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HMRC internal manual

National Insurance Manual

Earnings periods: notifications issued in accordance with regulation 3(2B), SS(C)R 2001: action by network: issuing the letter of intention

Once the new earnings period and the date from which it is to apply have been decided in principle:

  • send draft letter 1 (see NIMAppendix1) to the employer. This tells the employer that the Department is satisfied that the greater part of the employee’s earnings is paid at the longer interval and intends to issue a notification from a specified date. If more than one employee is involved amend the letter as appropriate and enclose a list of the employees
  • send draft letter 2 (see NIMAppendix1). This gives the same information but to the employee

BF the case for 40 days, which gives both parties time to dispute the facts within the 30-day period specified in the letter of intention.

A response to this letter is likely to cover one of 2 issues:

  • the future calculation of contributions, see NIM09520 or
  • a dispute about whether a notification is appropriate, see NIM09530.

Once the B/F date has expired and the issue of a notification is still considered appropriate take action as in NIM09514.

If, after considering any representations, the manager decides that a notification under regulation 3(2B) is not appropriate advise the employer by letter. There is no need to issue a formal decision to this effect, unless the employer or employee has previously requested a decision. If such a decision has been requested issue draft letter 5 (see NIM Appendix 1) and a decision as suggested in draft decision 2 (see NIM Appendix1) to the employer and draft letter 6 (see NIM Appendix 1) and the same decision to the employee.