DMBM527160 - NICs: Limitation: Effect of limitation on Time to Pay

The Limitation Act 1980 does not absolve the debtor from National Insurance debt that is due and payable.

If the debtor accepts the debt and asks for time to pay debt management offices should

• include National Insurance liabilities over six years old in any arrangement and
• satisfy the oldest National Insurance liabilities first.

Where National Insurance debt over six years old is already included in a time to pay arrangement debt management offices should continue pursuit of the debt.

If the debtor refuses to pay National Insurance liability that is over six years old from its original due date on the grounds of limitation, do not collect this part of the debt or commence proceedings if a defence of limitation would be successful.