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HMRC internal manual

Debt Management and Banking Manual

Pre-enforcement: coding out: class 2 NIC debts: NPS and end-of-year reconciliation

NPS(PAYE) conducts the end-of-year reconciliation and will determine if all the debt has been collected.


  • updates accounting entries onto the customer’s PAYE account
  • updates the Contact History on the customer’s PAYE account
  • sends to NPS(NI), details of amounts collected in the form of a credit to the receivables record
  • where appropriate, issues a P800 Tax Calculation to the taxpayer.

Note: May 2015 onwards will be the first year that class 2 NIC debts are included in end-of-year reconciliation and a P800 issued if appropriate. A P800 calculation will not be issued to demonstrate settlement or non-settlement of the outstanding debt if the overall result for the year balances.