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HMRC internal manual

National Insurance Manual

Earnings periods: notifications issued in accordance with regulation 31, SS(C)R 2001: action by network: issuing a decision

Once the BF date as in NIM09658 is reached and any enquiries satisfactorily dealt with, the regulation 31 direction must be issued as a decision. As with other NIC decisions this affords both the earner and the secondary contributor a right of appeal against the decision.

Whether to give a direction under regulation 31 is a decision listed under regulation 155A SS(C)R 2001. Regulation 155A(2)(c) provides that the decision is whether a notice under regulation 31 should be given and, if so, the terms of the direction.

The decision should be issued on form DAA1(A) and DAA1(B) and should notify the employer and employee of the decision to issue a direction and its terms. The DAA(1) and DAA(2) should be issued in accordance with the Decisions and Appeals Guide.

The decision wording should confirm that a direction is appropriate because a practice exists as to the making of irregular or unequal payments of earnings and by reason of the practice the liability for earnings related contributions is avoided or reduced.

The decision should also show the date from which the direction is to take effect. An example of the type of wording needed for the decision is contained at draft decision 5 (see NIM Appendix 1).

Draft direction letter 9 should be issued with the decision sent to the employer and draft direction letter 10 should be issued with the decision to the to the employee. Both letters should cover any points of relevance, including a response to any issues raised by the employer if these have not already been dealt with.