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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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Notices of decision: Examples of how to address the DAA1(A)

DANSP28000 explains who to address the DAA1(A) notice of decision to. Listed below are some examples of who the DAA1(A) should be addressed to.

  • Where the decision is about entitlement to pay voluntary Class 2 or 2 National Insurance contributions (NIC) - the person who needs to be told whether or not they are entitled to pay. There is only one person involved.
  • Where the decision is about liability to pay Class 1 secondary and primary NIC where we consider the secondary contributor (usually the employer) is liable to pay - the secondary contributor. The employee will usually get a DAA1(B) notice of decision.
  • Where the decision is about

    • whether the services of an individual (the worker) are provided by a managed service company,
    • the worker, or an associate of the worker, receives a payment or benefit which can reasonably be taken to be in respect of the services, and
    • the payment or benefit is not earnings derived from an employed earner’s employment of the worker with a MSC.

    Issue the DAA1(A) to the MSC deemed as the secondary contributor and the DAA1(B) to the worker.

    • Where the decision is about Class 1A or Class 1B NIC - these will be issued to the person liable to pay the NIC. Usually, employees are not named in such decisions because they are not liable to pay Class 1A or Class 1B NIC, therefore, the DAA1(B) is not issued. In cases where there is a dispute about who is liable to pay and two or more parties are involved, if more than one party is named in the decision, the DAA1(B) should be issued to the other parties named in the decision.
    • Where the decision includes a decision about entitlement to statutory payments, address the DAA1(A) to the employee. If the decision also includes a decision about who is liable to pay send a DAA1(B) to the person liable to pay the statutory payments.
    • Where the decision is only about whether a person can recover statutory payments and if so the amounts and/or whether the person liable to pay statutory payments can claim NIC compensation, address the DAA1(A) to the person liable to pay. Employees should not be named in decisions so the DAA1(B) will not be issued.
    • Employee working in the UK liable to pay primary Class 1 NIC where there is no liable secondary contributor. Send the DAA1(A) to the employee. The DAA1(B) will not be issued.
    • Where the decision is about whether a person or a number of persons in partnership (‘P’) are/were entitled to

      • regional employer NICs holiday deductions, and/or
      • a refund of the amount that exceeds the amount of the payments of Class 1 NICs from which P is entitled to make NIC holiday deductions

      send the DAA1(A) to P. Do not name employees within the decision. DAA1(B)s should not be issued.

      • Decisions relating to Class 2, 3 or 4 NIC - the person who has either paid the NIC, wants to pay the NIC, or is liable to pay the NIC, whichever is appropriate. DAA1(B)s will not be used in such cases.
      • Where the decision tells an employee that the non-payment of primary Class 1 NIC is due to their connivance or negligence - the DAA1(A) will be addressed to the employee.