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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
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Class 1: Treating as paid: When NICs can be treated as paid

Regulation 60, Social Security (Contributions) Regulations 2001

Treating primary Class 1 NICs as paid under the above regulation can only be considered when those NICs have not been paid to HMRC. They may or may not have been deducted from the employee, but the key point is that they have not been paid to HMRC and have consequently not been paid into the NI Fund.

Primary Class 1 NICs will be treated as paid where you can establish that

  • there is a Class 1 NICs liability; and
  • the primary Class 1 NICs have not been paid; and
  • the failure to pay was not due to consent or connivance or any negligence on the part of the employee.

For a definition of consent or connivance see NIM12115.

For a definition of negligence see NIM12116.