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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: Whether non-payment of primary National Insurance contributions was due to primary contributor’s consent, connivance or negligence

Regulations 60 and 155A(2)(h) of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004)

Regulation 155A(2)(h) of the Social Security (Contributions) Regulations 2001 (the Regulations) provides for HMRC officers to decide whether non-payment of primary National Insurance contributions (NIC) was due to the primary contributor’s connivance or negligence.

NIM12111 explains that regulation 60 of the Regulations can be used to allow unpaid primary Class 1 NIC to be treated as paid for the purpose of entitlement to contributory benefit. However, the NIC cannot be treated as paid where it is established that the failure to pay was

  • due to the consent or connivance of the employee; or
  • attributable to any negligence on the part of the employee.

Where the failure to pay primary Class 1 NIC occurred with the consent or connivance of the employee, the unpaid NIC cannot be treated as paid and must not be recorded on the NI account.

For more information about treating unpaid primary NIC as paid and the circumstances in which HMRC will not treat them as paid see NIM12110.

For guidance about the wording of such a decision see DANSP39300.