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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

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Wording of National Insurance contributions decisions in aggregation cases: More than one liable employer

DANSP35600 provides general guidance about the wording of National Insurance contributions decisions in cases which involve the aggregation of earnings.

In some disputes about aggregation of earnings, where an employee has more than one employment with different employers and HMRC considers that

  • the employers are carrying on business in association, and
  • earnings from all employments should be aggregated when calculating Class 1 NIC liability

you must word the NIC liability decision to reflect the fact that all employers are liable to pay NICs.

Example

Marion Potts worked for company A and company B during the tax years 2005/06 to 2008/09 inclusive. Earnings should have been aggregated but were not. NICs liability is apportioned between company A and company B in accordance with the legislation, see NIM10004.

Wording of decision to Company A

My decision is that

Company A is liable to pay primary and secondary Class 1 contributions on earnings paid to Marion Potts in respect of her employments with Company A and Company B for the period from 6 April 2005 to 5 April 2009.

The amount Company A is liable to pay in respect of those earnings is [£ amount].

Wording of decision to Company B

Company B is liable to pay primary and secondary Class 1 contributions on earnings paid to Marion Potts in respect of her employments with Company A and Company B for the period from 6 April 2005 to 5 April 2009.

The amount Company B is liable to pay in respect of those earnings is [£ amount].

See DANSP41700 about who should get which parts of the notice of decision (form DAA1).

More than six employees affected

See DANSP35800 where more than six employees are affected.