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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

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Notices of decision: Wording of decisions - Regional employer National Insurance contributions holiday: Entitlement - Examples of decisions

DANSP40850 provides information about the wording of decisions about entitlement to the regional employer National Insurance contributions holiday (the NIC holiday). The examples below apply the legal requirements and general principles for wording decisions in DANSP29200 and DANSP29300.

Example 1

An employer applies for the NICs holiday. Local Compliance establish that the new business started before 22 June 2010.

My decision is that:

You are not entitled to make a deduction under section 8 of the National Insurance Contributions Act 2011.

Commentary

If the new business started before 22 June 2010 the National Insurance Contributions Act 2011 makes no provision for P to be entitled to NIC holiday deductions. A covering letter should explain why HMRC considers that P is not entitled to the NIC holiday or refer P to previous correspondence in which such an explanation was provided.

Example 2

Local Compliance establish that an employer has deducted more than they should have from Class 1 NICs payments to HMRC in respect of two of their employees.

My decision is that:

You are entitled to make a deduction under section x of the National Insurance Contributions Act 2011 amounting to £2,133.67, in respect of the employees in the attached schedule.

Commentary

A covering letter should explain why HMRC considers that P has deducted more than they should have from Class 1 NICs payments to HMRC or refer P to previous correspondence in which such an explanation was provided. The letter should include the schedule which shows how HMRC calculated that the deduction P was entitled to make was £2,133.67.