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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: NIC: deferred NICs: enforcement

Distraint

Deferred NICs in England and Wales

You can distrain for deferred NICs under S121A of the Social Security Administration Act 1992, if the debt is unpaid 7 days after the debtor has been served with a certificate under S118(1) of the Act.

You should follow the procedure for Class 2 NICs where the debtor remains in business.

Deferred NICs in Northern Ireland

Your authority is under S115A of the Social Security Administration (Northern Ireland) Act 1992, if the debt is unpaid 7 days after the debtor has been served with a certificate under S112(1) of the Act.

You should follow the procedure for Class 2 NICs.

Summary Warrant in Scotland

You can take Summary Warrant action under S121B of the Social Security Administration Act 1992, if the debt is unpaid 14 days after the debtor has been served with a certificate under S118(1) of the Act.

Summary Proceedings (UK wide)

You can take Summary Proceedings for deferred NICs debts. The date the cause of action arose is the 34th day from the issue of the original deferment bill, and this will be entered in the Latest Due Date field on IDMS.

County Court Proceedings in England and Wales, Ordinary Cause in Scotland.

You can enforce payment of deferred NICs in the county court in England and Wales and in the sheriff’s court in Scotland. The proceedings should be taken in the name of an authorised officer of HM Revenue & Customs.

Particulars of claim

You should use the following wording for deferment debts:

‘Amounts payable by the defendant under the provisions of the Acts relating to Social Security’ followed by the appropriate class and amount of NICs outstanding.

Due date of deferred NICs debts

The due date of deferred NICs is 28 days from receipt of the original deferment bill, not the date it was issued. To ensure that the debtor received the bill, allow a further six days to cover time in the post. You should

  • use the 34th day from the issue of the bill as the due date (this will be noted in the Latest Due Date field on IDMS) and
  • calculate the six-year limitation period for starting any court proceedings from this date.