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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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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.