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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

Decision types: Earnings period decisions

Regulation 155A(2) of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004)

The adoption of certain pay practices by employers can result in liability for contributions being avoided or greatly reduced, either intentionally or not. This is because the earnings period applied to that pay practice could reduce or eliminate a liability that would otherwise exist if the earnings were paid differently. The Social Security (Contributions) Regulations 2001 (2001 No 1004) (the Regulations) allow HMRC to direct or give notice to an employer to use a different earnings period. For more information about such notices see NIM09500 onwards.

Regulation 155A(2) of the Regulations provides that decisions can be made about such notices, which give the employer and the employees affected by the decisions, the right of appeal.

Regulation 155A(2)(a), (2)(b) and (2)(c) of the Regulations provides for HMRC officers to decide

  • whether a notice should be given under regulation 3(2B) of the Regulations, and if so, the terms of such a notice (notice directing an employer to use the longest earnings period) - regulation 155A(2)(a),
  • whether a notice given under regulation 3(2B) of the Regulations should cease to have effect - regulation 155A(2)(b),
  • whether a direction should be given under regulation 31 and, if so, the terms of the direction (notice directing an employer to use a particular earnings period) - regulation 155A(2)(c).

For guidance about the wording of such decisions see DANSP38300.