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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: persons named in Class 1A National Insurance contributions liability decisions

DANSP30700 explains the general principles to apply when wording liability decisions.

Class 1A National Insurance contributions (NICs) liability decisions should always be sent to the person liable to pay the NIC, see NIM13101 for information about the liable contributor. In most Class 1A cases this is the employer but it can be another person prescribed as the secondary contributor or the third party who provided the benefits or non-cash vouchers.

DANSP41100 explains that a decision is issued to all persons named in decision. As employees are not liable to pay Class 1A or Class 1B NICs they are not usually named in these decisions and a DAA1(B) is not issued.

However, if there’s a dispute about whether a benefit attracts a Class 1 or Class 1A liability, the employee may have an interest because of the Class 1 impacts. In these circumstances, consideration should be given to naming the affected employees and sending the named person a DAA1(B) with a covering letter, see DANSP43200.

See:

  • DANSP41200 about cases where it’s not possible to individually identify all affected employees
  • DANSP41500 where more than 6 employees are affected

Note - Referring to “employees in the attached schedule” in the wording of your decision has the affect of naming the employees and as such each employee named on the schedule should also receive a DAA1(B). If it’s not appropriate to name the employees in your decision your covering letter should explain about of any schedule of employees that is included.

In cases where there’s a dispute about who is liable to pay and 2 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.

For  examples of a Class 1A decisions, see DANSP32000.