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HMRC internal manual

National Insurance Manual

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HM Revenue & Customs
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NIM07066 - Class 1 NICs: Payments made under employment legislation: Re-allocating primary NICs paid on a payment made under a reinstatement order, a re- engagement order, an order for the continuation of a contract of employment or a protecti

Regulation 5(b) Social Security (Contributions) Regulations 2001

In order to protect or enhance their benefit/pension position, an employee may requestthat NICs paid on a payment made under:

are treated as paid in an earlier tax year to the one in which the NICs were actuallypaid. Such a request should be made in writing.

The situations in which NICs may be re-allocated are as follows:

  • the period to which the payment relates falls wholly in a tax year other than the one in which the NICs were paid (see NIM07067);
  • the period to which the payment relates falls partly in the tax year in which the NICs were paid and partly in one or more other tax years (see NIM07068);
  • the period to which the payment relates falls wholly in two or more years other than the one in which the NICs were paid (see NIM07069).

For:

  • guidance on the information required in order to apportion the amount of primary NICs paid, see NIM07070
  • an example of how to apportion the amount of primary NICs paid, see NIM07071
  • guidance on adjusting the employee’s NI account, see NIM07072.