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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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Wording of National Insurance contributions decisions in aggregation cases: More than six employees affected

DANSP41500 provides guidance about selecting a representative sample of employees for decisions where more than six employees are affected. In some cases there can be hundreds of employees affected and it is not practical to select six or less employees for the sample. Where the sample size is larger than six do not name the employees in the decision. Attach a schedule of the employees affected by the decision to each DAA1(A) issued to the employer(s).

When issuing DAA1(B)s to each employee included in the sample, ensure the schedule issued to each employee includes their details, do not include any other employee’s details. Explain in a covering letter that to protect the right to confidentiality you have removed other employee’s details.

The schedule issued to the employer should include for each employee

  • the name of the employer if more than one employer
  • full names
  • NI Number
  • staff or personnel number (optional - may help the employer)
  • total of employers and employees Class 1 NICs due specific to the employee
  • total of employers and employees Class 1 NICs paid specific to the employee
  • difference between total of employers and employees Class 1 NICs due and paid specific to the employee.

DANSP35600 provides general guidance about the wording of National Insurance contributions decisions in cases which involve the aggregation of earnings. The wording of the decision should reflect the fact that no employees are named in the decision but are listed on an attached schedule.

Example 1 - Two employers carrying on business in association with each other

My decision is that

ABC Ltd is liable to pay primary and secondary Class 1 contributions on earnings paid to the employees listed in the attached schedule in respect of their employments with ABC Limited and XYZ Limited for the period from 6 April 2005 to 5 April 2009.

The amount ABC Limited is liable to pay in respect of those earnings is £258,987.37.

The amount ABC Limited has paid in respect of those earnings is £168,281.79.

My decision is that

XYZ Limited is liable to pay primary and secondary Class 1 contributions on earnings paid to the employees listed in the attached schedule in respect of their employments with ABC Limited and XYZ Limited for the period from 6 April 2005 to 5 April 2009.

The amount XYZ Limited is liable to pay in respect of those earnings is £123,398.40.

The amount XYZ Limited has paid in respect of those earnings is £78,000.89.

Example 2 - Employees have more than one employment with the same employer

My decision is that

ABC Ltd is liable to pay primary and secondary Class 1 contributions on earnings paid to the employees listed in the attached schedule in respect of their employment with ABC Limited for the period from 6 April 2005 to 5 April 2009.

The amount ABC Limited is liable to pay in respect of those earnings is £258,987.37.

The amount ABC Limited has paid in respect of those earnings is £1,68,281.79.