DMBM660310 - Summary proceedings: National Insurance disputes and difficulties after you issue SP summons

The majority of this manual will be archived on 30 Apr 2024. If there is content within this manual you use regularly, email hmrcmanualsteam@hmrc.gov.uk to let us know.

NIC Class 1 or 1A arise from an underpayment on the Employer’s End of Year Return, form P35 (or P11D(b)). Occasionally you will receive NIC cases from outside the BROCS/IDMS system.

If the debtor disputes the NIC Class 1 liability, proceed as follows.

Section 8 Transfer of Functions Act 1999 decision already made

Once a decision has been made under Section 8 Transfer of Functions Act 1999 (ToFA99/S8) the NICs are payable. A certificate of debt under Section 118 Social Security Administration Act 1992 (SSAA92/S118) provides conclusive evidence of debt, therefore

  • provide the certificate of debt and any evidence of the Section 8 decision (if you have a copy)
  • refer the court to Section 117A(2) Social Security Administration Act 1992 (SSAA92/S117) which provides that the certificate of debt is conclusive evidence of debt and
  • continue court action as normal.

However, you may receive a case for recovery where a Section 8 decision has not been made.

Top of page

Section 8 ToFA 1999 decision not made

If the debtor disputes the debt either before or at a hearing and a Section 8 decision has not been made

  • ask the court to order a general adjournment for a decision to be made as in S117A(5) SSAA 1992
  • refer the substance of the objection to the originating office `and tell them that the court has ordered a Section 8 decision to be made
  • ask them to send you a copy of the decision.

Appeal determined / appeal period expired

After any appeal has been determined or the period for appeal has expired you should

  • tell the court and the debtor of the revised amount payable and advise the debtor of a new hearing date in no less than 14 days
  • adjust the amount due in all appropriate records if necessary.

At the hearing ensue you have a certificate of debt as conclusive evidence of debt.