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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

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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; 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); Article 7(1)(c) of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (SR 1999 No 671); 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 liability decisions allowed under section 8(1)(c) of the Transfer Act

The only liability decisions that can be made in respect of Class 4 National Insurance contributions (NIC) are those that involve questions about deferment of payment or exception from payment. Regulations about deferment and exception are made in Part 8 of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004) (the 2001 Regulations). See DANSP34000 for an example of such a decision.

Taxes Management Act 1970 - Class 4 NIC paid through self-assessment system

A substantial proportion of people liable to pay Class 4 NIC, pay those NIC with income tax assessed under the self-assessment system. Where HMRC conducts an enquiry into a self-assessment return (section 9A of the Taxes Management Act 1970 (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 Transfer Act. Do not use form DAA1 in these cases. The DANSP does not include guidance about such decisions and appeals. For guidance see the Enquiry Manual.