Class 1: treating as paid: negligence established: issuing an opinion
Regulation 60, Social Security (Contributions) Regulations 2001
If you conclude that the failure to pay primary Class 1 NICs was due to negligence on the part of the employee, you should write to the employee and advise that
- Where primary Class 1 NICs are unpaid, regulation 60 only allows them to be treated as paid if the failure to pay was not due to negligence on the employee’s part.
- In this case you consider them to have been negligent - the letter must detail the reasons for reaching this conclusion.
- The treating as paid provisions are therefore not applicable.
- The unpaid primary Class 1 NICs cannot be recorded on their NI account.
The employee should be invited to make payment of the unpaid contributions with a view to improving their entitlement to contributory benefit. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
You should also advise that if the employee wishes you to reconsider your opinion, they must provide new information. If the employee disputes the opinion, but does not provide any new information, a formal decision should be issued (see NIM12132).