DMBM525640 – Class 2 NIC: Payment received in DPO

If you have not commenced proceedings or payment is made before judgment obtained or order granted, allocate payment firstly to NICs then to any other debts. If proceedings have commenced then clear costs first before allocating to NICs etc.

Payment for NIC alone

If you receive payment for the NIC alone

• send it with a fully completed – payslip PS1 (NICO) to Banking Operations at Newcastle at

HMRC
Banking Operations
Newcastle Banking Unit
Benton Park View
Longbenton
NE98 1ZZ

• note payment details on IDMS Action History
• reduce the work item and collect any remaining balance.

Payslip Completion

You must make sure that every payslip (PS1 NICO) you complete whether on receipt of a payment locally or when issuing them to the contributor contain the necessary information to ensure that payment is allocated to the correct period of debt. If you don’t it can be a lengthy time-consuming process to have them re-allocated.

A payslip completion help card is held on the Class 2 NIC website.

Combined payment for NIC and tax and costs

If a customer proposes to make a combined payment by cheque you should ask for separate cheques. This will allow the NICs cheque to be referred to Banking Operations at Newcastle without delay.

If a combined SA Tax and NICs payment is received note IDMS and SA Notes

• complete form AZ818 (Recovery) and
• send it to Banking Operations Shipley for processing

Class 2 NICs payment received – no Class 2 NICs debt held

If payments are received in respect of Class 2 NICs debts, which have not been transferred to you for enforcement, send the payment to Banking Operations at Newcastle (Area code 12).

Dishonoured cheque cases

If the cheque dishonours, SES will inform the appropriate DPO by telephone.