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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

Decision types: Employment status decisions: Introduction

Section 8 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (The Transfer Act) and article 7 of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (SR 1999 No 671) provides for officers of Her Majesty’s Revenue and Customs to decide a person’s employment status, specifically

  • whether a person is or was an earner and, if so, the category of earners in which he is or was to be included - section 8(1)(a) of the Transfer Act and article 7(1)(a) of the Order, and
  • whether a person is or was in employed earner’s employment for the purposes of any claim for industrial injuries - section 8(1)(b) of the Transfer Act and article 7(1)(b) of the Order.

For more information about employment status refer to the Employment Status Manual. ESM0119 sets out when you should issue decisions.

Employment status and the consequent National Insurance contribution liability can affect a person’s entitlement to certain social security benefits, for example, industrial injuries and jobseekers allowance.

It is HMRC’s responsibility to issue decisions about employment status, for the purposes of a claim for industrial injuries benefit, and not the Department for Work and Pensions. The decision is worded in the same way as any other employment status decision. DANSP30000 tells you how to word the decision. The covering letter should explain that the decision is required for the purposes of the claim for industrial injuries.

Statutory Payments dispute

See DANSP30100 where the employment status dispute arises as a result of a statutory payments dispute between an engager and a worker.