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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Debt and return pursuit: NICs: limitation: remission due to limitation

If the provisions of the Limitation Act 1980 prevent you from collecting any National Insurance debt that is either:

  • Class 1 and Class 1A accounted for on the BROCS system
  • Class 4 accounted for on SA.

you should:

  • remit the debt Type 10 using the on-line C495 (DMBM745060 onwards)
  • select the revenue loss “type 10 NIC Limitation Act” from the drop-down menu.

Partial remission

Usually Type 10 on SA allows you to remit the NIC Class 4 part of the SA debt.

BROCS does not allow you to do the same for NIC Class 1 and Class 1A if there is an associated PAYE charge, Student Loan or related interest outstanding. You have to wait until the rest of the debt is paid.

Other National Insurance debts

Remission procedures have not been finalised for you to remit any other NICs debts on NPS. So on IDMS set the:

  • Next Action as ‘Pot Remission’
  • Next Action Date of Today plus 12 months.