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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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Notices of decision: Wording of decisions about late applications for refunds of National Insurance contributions: Class 1A National Insurance contributions paid based on inaccurate or incomplete information

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 55(3) of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004) (the Regulations) can be admitted.

Persons named in a decision

The person to name in such decisions is the person who paid the Class 1A NIC in error. This is usually the employer but can be a third party in certain circumstances. Employed earners are not liable to pay Class 1A NIC so avoid naming them in a decision. If you name them you must send them a notice of decision (DAA1(B)).

Period covered by a decision

Class 1A NIC are paid in July after the end of the tax year in which benefits were provided. For example, Class 1A NIC due on benefits provided for an employee’s use in the 2007/08 tax year are due for payment in July 2008. The decision should refer to the Class 1A NIC due on benefits provided in the tax year in question.

Example of wording of decisions

The examples below apply the legal requirements and general principles for wording decisions in DANSP29200 and DANSP29300. They are also worded in such a way as to avoid naming employees.

Example one

My decision is that:

You did not have a reasonable excuse for making the application for repayment of some of the Class 1A contributions you paid in respect of company cars provided to those employees listed in the attached schedule in the 2000/01 tax year after the end of the specified period.

Example two

My decision is that:

You have a reasonable excuse for not making the application for return of some of the Class 1A contributions paid in respect of company cars provided to the company directors in the 2000/01 tax year within the specified period.

Your 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 55(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 allow a person to have Class 1A NIC repaid after the specified period, and
  • why the employer did not satisfy those conditions.