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HMRC internal manual

National Insurance Manual

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 protective award:

How to apportion the amount of NICs paid between tax years: Adjusting the employee’s NI account

Once you have calculated, as per NIM07071, the amounts of:

  • earnings; and
  • primary NICs

to be re-allocated, you will need to amend the relevant postings on the employee’sNI account on NIRS2. Do this:

  • in accordance with current guidance and procedures; and
  • by making the necessary adjustments as “employee only”.

So, using the figures in the example at NIM07071, you would:

  • for the 2000/01 tax year, increase the amounts of earnings and primary NICs by £697.67 and £32.48 respectively; and
  • for the 2001/02 tax year, reduce the amounts of earnings and primary NICs by the same amounts.