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HMRC internal manual

National Insurance Manual

Class 1: Personal Liability Notices: what does HMRC have to prove to issue a PLN?

Section 121C of the Social Security Administration Act 1992

Section 121C of the Social Security Administration Act 1992 provides HMRC with the power to issue a Personal Liability Notice to an individual in circumstances where:

  • a body corporate has failed to pay the ‘contributions’ due at or within the prescribed time

and

  • that failure is, in the opinion of HMRC, attributable to the fraud or neglect of one or more individuals who, at the time of the fraud or neglect, were ‘officers’ of the company - such officers are known as ‘culpable officers’

‘Contributions’ include primary and secondary Class 1 NICs, Class 1A NICs, Class 1B NICs and related interest or penalties charged in respect of these contributions.

For the meaning of:

  • ‘officer’, refer to NIM12203
  • ‘neglect’, refer to NIM12204
  • ‘fraud’, refer to NIM12205

The burden of proof rests with HMRC.

The standard of proof required is the normal civil standard, on a balance of probabilities.