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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
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Class 1: Treating as paid: When NICs cannot be treated as paid: Consent or connivance

Regulation 60, Social Security (Contributions) Regulations 2001

NIM12111 explains that the above regulation can be used to allow unpaid primary Class 1 NICs to be treated as paid for the purpose of entitlement to contributory benefit. However, the NICs cannot be treated as paid where it is established that the failure to pay was

  • due to the consent or connivance of the employee; or
  • attributable to any negligence on the part of the employee.

Something done with the consent or connivance of someone normally means something done with their agreement or permission, either explicit or implicit. Where the failure to pay primary Class 1 NICs occurred with the consent or connivance of the employee, the unpaid NICs cannot be treated as paid and must not be recorded on the NI account. If any unpaid NICs are already recorded, those NICs must be removed from the account. NIM12119 provides further information on removing NICs from NI accounts.

For a definition of negligence see NIM12116.