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