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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

Notices of decision: Wording of decisions about late applications for refunds of National Insurance contributions: Class 1 National Insurance contributions paid at the non-contracted out rate instead of the contracted-out rate

DANSP23500 explains that appealable decisions can be issued which tell a person whether a late application for a refund of National Insurance contributions (NIC) under regulation 54(3) of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004) (the Regulations) can be admitted.

Persons named in a decision

For guidance about who to send the decision to see DANSP31800. The guidance equally applies to decisions about whether a late application can be admitted for a refund of NIC paid at the non-contracted out rate when NIC were due at the contracted-out rate.

Period covered by a decision

For guidance about the period to show in a decision see DANSP30800. The guidance equally applies to decisions about whether a late application can be admitted for a refund of NIC paid at the non-contracted out rate when NIC were due at the contracted-out rate.

Example of wording

The example below applies the legal requirements and general principles for wording decisions in DANSP29200 and DANSP29300.

Example 1 - Employer did not have a reasonable excuse for making the application for repayment of the Class 1 NIC within the specified period

My decision is that:

ABC Limited did not have a reasonable excuse for not making the application for repayment of the difference between the non-contracted out rate of Class 1 contributions paid and the contracted-out rate of Class 1 contributions due from ABC Limited for the period from 6 April 2002 to 5 April 2003 tax year amounting to £5,674.38 within the specified period.

In cases where HMRC accepts that a person has a reasonable excuse for making the refund application late, to admit the application, HMRC must be satisfied that the application was made without unreasonable delay after the excuse had ceased. In cases where HMRC considers that there has been an unreasonable delay, the wording of the decision should reflect this, see example 2 below.

Example 2 decision

My decision is that:

ABC Limited had a reasonable excuse for not making the application for repayment of the difference between the non-contracted out rate of Class 1 contributions paid and the contracted-out rate of Class 1 contributions due for the period from 6 April 2002 to 5 April 2003 amounting to £5,674.38 within the specified period.

ABC Limited’s application cannot be admitted because it was made with unreasonable delay after the reasonable excuse had ceased.

Commentary on examples

The wording of the decisions reflect the fact that conditions in regulation 54(3) of the Regulations are not satisfied.

Before issuing such a decision, HMRC should have told the employer

  • what the specified period was,
  • what conditions must be satisfied to admit a late application for repayment of the NIC, and
  • why the employer did not satisfy those conditions.