DANSP16100 - Decision types: National Insurance contributions liability decisions: Class 4 National Insurance contributions

Section 8(1)(c) and 8(2) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (TOFA)

Section 17(1) of the Social Security Contributions and Benefits Act 1992; Part 8 of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004) (SSCR)

Article 7(1)(c) of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (SR 1999 No 671) (TOFA NI)

Section 17(1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992

HMRC Officers can decide whether a person is or was liable to pay contributions of any particular class and, if so, the amount of that liability, (liability decisions). For more information about such decisions see DANSP15600.

Class 4 National Insurance contributions (NICs) liability decisions allowed under section 8(1)(c) of TOFA

For tax years before 6 April 2015 the only liability decisions that could be made in respect of Class 4 NICs are those that involve questions about deferment of payment or exception from payment. Decisions about exception can still be appealed. Regulations about deferment and exception were made in Part 8 of SSCR. See DANSP34000 for an example of such a decision.

Taxes Management Act 1970 (TMA) - Class 4 NICs paid through Self Assessment (SA)

People liable to pay Class 4 NICs pay those NICs with Income Tax under SA. Where HMRC conducts an enquiry into an SA return (section 9A of the TMA) after completing their enquiries, any closure notice issued which makes amendments to the return, is a formal decision which carries a right of appeal under section 31 of the TMA, not under section 8(1)(c) of the TOFA. Do not use form DAA1 in these cases. The DANSP does not include guidance about such decisions and appeals.