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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Debt and return pursuit: NIC: class 1 NICs: NICO cases - action by NICO

NICO responsibilities

NICO calculate the Class 1 debt and make applications for payment, including a telephone call to the employer.

England and Wales

If the debt is not paid, the case papers will be referred for enforcement action to the DTO under cover of a transfer form. It will be the DTO in whose area the debtor resides or carries on business. Accounting responsibility for debts transferred to the DTO under these arrangements remains with NICO.

When transferring the debt, NICO should enter the following on the transfer form:

  • the NICO reference number
  • the area/destination code, so that any payments are allocated to the correct business area
  • the Accounts Office reference number (obtainable from the View Employer Summary screen in the Employer Business Service (EBS) system).

The papers transferred to the DTO should always contain:

  • a summary of the debt with the debt for each year listed separately
  • an interest calculation confirming the total interest due and the daily rate of accrual
  • a report of any telephone call to the debtor
  • a copy of the formal application to the debtor warning recovery action will follow continued non-payment
  • the debtor’s telephone number, and contact details of the NICO caseworker who deals with the case.

The DTO will not require Companies House information for limited companies as a matter of course.


Class 1 National Insurance debts in Scotland are sent to the Civil Recovery Section at Edinburgh to enforce.

Northern Ireland

Northern Ireland’s Class 1 debts are sent to EIS Scotland (Belfast Team) to enforce.

Changes in circumstances

NICO will advise the DTO immediately of any change to the debt or if payment is received.