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HMRC internal manual

National Insurance Manual

NICs avoidance: investigating avoidance: section 8 decisions

Decisions and Appeals for National Insurance and Statutory Payments (DANSP)

DANSP explains the relevant legislation and how HMRC staff should apply it when dealing with disputes about NICs. If a person has used a NICs avoidance arrangement and will not accept that NICs are due issue a decision under

  • section 8 of the SSC(ToF)A 1999, or
  • article 7 of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (SI 1999 No 671).

These decisions do not represent formal assessments of NICs and so are not equivalent to income tax determinations issued under regulation 80 of the Income Tax (Pay As You Earn) Regulations 2003.

Where a person considers that NICs are not due, then the section 8 decision will show, in respect of one employee or director, the total NICs due and paid. If more than one employee/director is affected, then a decision must be issued for each unless it is appropriate to issue decisions in respect of a representative sample of persons, see DANSP45100 and DANSP31600.

These NICs decisions provide those named in the decision the right of appeal to have the matter determined by the Ministry of Justice Tribunals Service.

Protecting debts

Decisions do not protect NICs debts or the interest due on those NICs, see NIM60200.