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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

Notices of decision: Wording of National Insurance contributions liability decisions: Representative sample of employees

Where you are issuing decisions for a representative sample of employees, see DANSP41500, in a letter to the liable secondary contributor

  • tell them the National Insurance contributions (NICs) shown as due in the decision(s) are only part of the NICs you consider are due in respect of all the affected employees, and
  • request the total unpaid NICs in respect of all affected employees.


An employer has given two hundred employees a cash bonus, but did not include the bonuses in gross pay for Class 1 NICs. HMRC considers Class 1 NICs are due. The employer does not consider that Class 1 NICs are due. The unpaid NICs amount to £5 million. HMRC and the employer agree to select 5 employees as a representative sample for the purposes of issuing decisions and appealing to the tax tribunal.

HMRC decides to issue decisions setting out the total Class 1 NICs due and the total NICs paid for the tax year in which the bonuses were paid.

Each decision must show, in respect of the named employee, the total NICs due for the tax year, which includes

  • total NICs shown as due on that employee’s P14, and
  • the NICs due on the bonus.

The total NICs shown as due on all the decision less the total NICs shown as paid on the named employees’ P14s amounts to £145,879:39, which is only part of the £5 million HMRC considers has yet to be paid.

In this example the covering letter needs to tell the employer that £5 million is due to be paid and that £145,879:39 included on the decisions is part of that amount.