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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

Notices of decision: Who to name in decisions: More than six persons affected

Regulation 3 of the Social Security Contributions (Decisions and Appeals) Regulations 1999 (SI 1999 No 1027) requires that a decision must state the name of every person in respect of whom it is made. See DANSP41100 for general guidance about naming those affected by decisions.

Representative sample

There will be cases where the number of workers affected by a decision exceeds six. In such cases, you must first try to agree a representative sample with the employer. When agreeing a representative sample take the following action

  • tell the employer that to reduce the administrative burden on them, HMRC and potentially the tribunal (if any of the persons named in the decision appeal to the tribunal), that HMRC would like to select and agree a representative sample of workers,
  • suggest workers that would be suitable but consider the employers objections,
  • consider suggesting workers for whom you have already gathered facts relevant to the decision,
  • if you have difficulty agreeing a representative sample ask the employer to choose some workers and agree that you can select some workers.

Try to discuss the selection of workers verbally, either face to face or during a telephone conversation.

Do not assume that because an employer or their agent disagrees with our position on the issue in dispute that they will not agree a sample of workers.

The decision maker does not have to choose six workers as a representative sample, it may be suitable to select more or less than six. They may consider that it is necessary to select more than six workers, for example where there are significant differences in facts relevant to the decision.

If necessary, seek advice about who to name in decisions from Simon Clark (PTCPP Technical Team).

If you have selected more than one employee as a representative sample, a decision should be issued in respect of each employee.

Where a representative sample of workers is agreed, in a covering letter issued with the decisions to the person the DAA1(A) is addressed to,

  • tell them the terms under which the representative sample was selected and agreed,
  • and name the person(s) who agreed the sample,
  • tell them to inform affected workers not included in the sample so that they are aware of what is going on and that the result of any appeal will apply to all affected employees. Consider providing the employer with an explanatory letter for issue to all affected employees. This will only be necessary where primary National Insurance contributions and/or an employment status dispute is involved.

Representative sample not agreed

Where it has not been possible to agree a representative sample through face to face or telephone discussions and the administrative burden would be too large to issue decisions in respect of every affected person,

  • an Information Notice, under Schedule 36 Finance Act 2008, must be issued to the employer to obtain the required information and/or produce documents, see CH20000 and CH23000.

Where the employer does not provide the required information, see DANSP41200.