NIM12212 - NICs Personal Liability Notices: rights of appeal

Section 121D of the Social Security Administration Act 1992 (SSAA 1992)

The authority for HMRC to issue a Personal Liability Notice (PLN) is provided by section 8(1)(h) of the Social Security (Transfer of Functions, etc) Act 1999.

Section 11 of the same act provides the individual with a right of appeal against PLN.

Any appeal must first be made to HMRC in writing. In making an appeal the individual has the opportunity to provide further information to support their case and to request postponement of the disputed contributions liability until the appeal has been settled.

Section 121D of the SSAA 1992 sets out the grounds on which an individual can appeal. It states:

“an individual who is served with a personal liability notice may appeal against the Inland Revenue’s decision as to the issue and content of the notice on the ground that:

(a) the whole or part of the amount specified in the Notice does not represent contributions to which section 121C should have been applied

(b) the failure to pay the contributions specified in the Notice was not attributable to any fraud or neglect on the part of the individual in question

(c) the individual in question was not an officer of the body corporate at the time of the alleged fraudulent or negligent failure to pay the contributions due

(d) the opinion formed by HMRC, either in terms of treating an individual as the sole culpable officer, or in apportioning the unpaid contributions between two or more culpable officers was unreasonable.”

You can find more details on appeals: