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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

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HM Revenue & Customs
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Decision types: Personal liability notices

Section 8(1)(h) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999; Article 7(1)(h) of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (SR 1999 No 671); Section 121C of the Social Security Administration Act 1992; Section 115B of the Social Security Administration (Northern Ireland) Act 1992

HMRC officers can decide whether a director or employee, because of action attributable to fraud or neglect, is to be held liable for payment of unpaid contributions due from a company.

These decisions are required where a personal liability notice (PLN) is issued and disputed on the following grounds

  • all or part of the National Insurance contributions (NIC) included in the notice should not have been included,
  • the failure to pay the NIC was not as a result of fraud or neglect by the individual named,
  • the person named on the PLN was not an officer of the company at the time of the fraudulent or negligent failure to pay,
  • the level of the apportionment of the debt to the person named was unreasonable.

The notice of decision should include a decision about whether a director or employee is to be held liable for payment of NIC and a decision about the amounts paid.

HMRC’s Specialist Investigations Insolvency & Securities issue such decisions.

Guidance about PLNs can be found in the Insolvency Manual from INS44250 and NIM12201 onwards.

For wording of such decisions see DANSP38000.