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HMRC internal manual

National Insurance Manual

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HM Revenue & Customs
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Earnings periods: notifications issued in accordance with regulation 3(2B), SS(C)R 2001: decision that notification under regulation 3(2B) should cease to have effect

Regulation 3(2D), SS(C)R 2001

Regulation 3(2D) provides that a notice under regulation 3(2B) shall have effect until an officer of the Board decides, either by himself or on request from either an earner or secondary contributor, that the practice to which the notice relates has ceased.

Regulation 3(2D) also provides that if an officer of the Board decides that a notice is to cease to have effect he must notify the earner and secondary contributor. This further notice must also be provided by way of a decision.

A decision as to whether a notice given under regulation 3(2B) is to cease to have effect is listed at regulation 155A(2)(b). Such decisions again carry a right of appeal to the Tax Commissioners.

Changes to the pay practice

If, after a regulation 3(2B) notification has been issued, a change to the way in which the employee is paid occurs, and that change means that the conditions of regulation 3(2A) are no longer satisfied, that notice can cease to have effect.

The most obvious reasons why the conditions of regulation 3(2A) will no longer be satisfied are that the employer:

  • changes the periods over which an employee’s earnings are paid
  • changes the amount of earnings paid at the differing intervals.

Changes which negate the direction.

If the changes to the pay practice are such that the conditions of regulation 3(2A) are no longer satisfied, a decision must be issued which revokes the former direction. The former direction is revoked from the date on which the change to the practice occurred. As with decisions under regulation 3(2B) both the earner and the secondary contributor must be provided with the decision.

The decision should be provided on forms DAA(1) and DAA(2). An example of the wording that can be used in such a decision is shown at draft decisions 3 (see NIM Appendix1)

Changes which do not negate the direction

If, unusually, the changes to the pay practice do not alter the correctness of the original regulation 3(2B) direction a decision must also be issued to this effect, the decision should be provided on forms DAA(1) and DAA(2). An example of the wording that can be used in such a decision is shown at draft decisions 4 (see NIM Appendix1)

This again provides that both the earner and the secondary contributor are afforded an appeal right. Where the decision is that a notice under regulation 3(2B) should not cease to have effect a letter explaining the reasoning for the decision should accompany the DAA(1) and DAA(2).