Summary Proceedings (Sc): Small claims - defended claims for PAYE/NIC: Class 1/1a NIC liability disputed
In proceedings involving Class 1/1a National Insurance Contributions (NICs) you may receive a defence which questions
- whether a person for whom you are claiming contributions is an employed person or
- what contributions, if any, are payable.
Section 117A of the Social Security Administration Act 1992 provides that this is not a matter for the court to determine. These are questions that must be determined by an officer of the board making a decision under Section 8 of the Social Security Contributions (Transfer of Functions etc Act 1999). You should
- explain these facts to the court,
- advise that it may take some time to have the matter determined and
- ask them to sist the case (DMBM675100).
Where the court is unwilling to grant a sist you should request that the court grant a continuation for at least three months (DMBM675100).
In all cases you must then, as a matter of urgency, refer all your papers together with a full report of the hearing to HMRC Solicitors Office.