NIM60400 - NICs avoidance: investigating avoidance: gathering facts - general

Avoidance Handling Process guidance

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) AHP6450(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Information and inspection powers

Section 110ZA of the SSAA 1992 and section 104ZA of the Social Security Administration (Northern Ireland) Act 1992 applies Schedule 36 to the FA 2008 for the purposes of checking a person’s position regarding Classes 1, 1A, 1B, and 2 NICs. For guidance about such powers, seeCH20150.

Class 1 NICs liability consists of two parts

• primary - payable by the earner, and
• secondary - payable by the secondary contributor (usually the employer).

If considered necessary, information can be requested from either the employer or the earner (usually the employee or director), or from both.

When making enquiries of individual earners, if those enquiries are restricted to gathering information/ documents for Class 1, 1A, 1B, or 2 NICs purposes only, do not make an enquiry under section 9A of the Taxes Management Act 1970 (section 9A).

It should be on rare occasions that enquiries are restricted to only the NICs position, because many avoidance arrangements relate to the avoidance of both PAYE income tax and NICs. Where enquiries relate to both, you should consider making an enquiry under section 9A, see CH23540.

For guidance about gathering facts from an employed earner’s family member, see NIM60450.