Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

From
HM Revenue & Customs
Updated
, see all updates

Decision types: Penalties decisions: Breach of regulations penalties

Section 8(1)(k) and 8(1)(l) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999; Article 7(1)(k) and 7(1)(l) of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (SI 1999 No 671); section 113(1)(a) of the Social Security Administration Act 1992; section 107A of the Social Security Administration (Northern Ireland) Act 1992;

DANSP15100 explains that appealable decisions can be made about penalties where a person breaches social security regulations, which includes

  • the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004),
  • the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002 (SI 2002 No 2820),
  • the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations (Northern Ireland) 2002 (SR 2002 No 379),
  • the Statutory Sick Pay (General) Regulations 1982 (SI 1982 No 894),
  • the Statutory Sick Pay (General) Regulations (Northern Ireland) 1982 (SI 1982 No 263),
  • the Statutory Maternity Pay (General) Regulations 1986 (SI 1986 No 1960), and
  • the Statutory Maternity Pay (General) Regulations (Northern Ireland) 1987 (SR 1987 No 30).

Examples of the breach of regulations which can result in the imposition of penalties include

  • an employer fails to keep statutory sick pay records when required to do so - breaches regulation 13 of the Statutory Sick Pay (General) Regulations 1982, see SPM90250,
  • a self-employed person fails to notify HMRC that he became self-employed - breaches regulation 87 of the Social Security (Contributions) Regulations 2001, see NIM23008 for more information.

Where you need to issue formal decisions about a related matter on form DAA1, for example, about Class 2 National Insurance contributions liability, consider making a penalty determination at the same time. Most penalty determination notices provide the formal decision about the penalty and the right of appeal against the penalty. Where the penalty determination notices provide the formal decision do not use form DAA1.