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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

Notices of decision: Wording of employment status decisions: Linking employments status decisions with National Insurance contributions liability and paid decisions

DANSP30100 gives you general information about the wording of employment status decisions. Where HMRC considers that the worker is in employed earner’s employment the engager will be liable to pay secondary and primary Class 1 National Insurance contributions (NIC). If none have been paid HMRC will need to take action to recover the unpaid NIC.

Where HMRC decides that the worker was a self-employed earner, if the engager has treated the worker as an employee and Class 1 NIC has been paid erroneously, the engager and worker may be entitled to a refund of Class 1 NIC paid in error.

In both cases you can include, on the same notice of decision that includes the employment status decision, decisions about NIC liability and the amounts paid. Do not put the NIC liability and NIC paid decisions on a separate notice of decision to that of the employment status decision.

In some employment status cases you may choose to only put the employment status decision on the notice of decision and not include NIC paid and NIC liability decisions. For example

  • in a case where an engager refuses to furnish information or documents to enable you to determine the NIC liability and using your information powers to get the information or documents has proved unsuccessful, or
  • where HMRC considers that the worker is self-employed and Class 2 NIC are being paid.

Include liability and paid decisions with employment status decisions where this is practical, particularly where you consider that Class 1 NIC are due and none have been paid. That is because if recovery is referred to the Courts and the engager disputes liability and or the amounts payable, the Court proceedings will be adjourned until NIC liability and NIC paid decisions are made and the decisions are final.


  • DANSP15600 for information about liability decisions,
  • DANSP17000 for information about paid decisions.