ECH22091 - Settlement: By NIC Decision

Section 8 of the Social Security Contributions (Transfer of Functions) Act 1999

Most EC cases will be concluded by negotiation through Class 6 settlements.

A formal decision will only be made where agreement to NIC, SSP, SMP and other related matters cannot be reached.

Formal decisions carry with them the right to appeal. The guidance in the Decisions and Appeals Guide (DAG) should be followed in all cases.

There are three stages to the decisions and appeals process, for example

Stage 1 - The Informal Stage

The caseworker offers an initial opinion on liability to pay NIC. At this stage any dispute can be settled by normal discussion and agreement.

Stage 2 - The Formal Decision

The normal process for discussion is exhausted.

Agreement cannot be reached and a formal decision is made by a HM Revenue & Customs Decision Maker. There are 30 days in which to appeal.

Where there is evidence of a liability to a penalty the caseworker should

In non contentious cases

• wait 30 days from the issue of the determinations
• obtain confirmation of whether an appeal has been received and
• if no appeal has been received commence formal action to raise penalty determinations ( ECH21135).

In contentious cases or where an appeal is received

• commence formal action to raise penalty determinations ( ECH21135)
• write to the employer to advise that this is being done and
• arrange for all appeals to be listed at the same Commissioners hearing

Stage 3 - The Appeal

Appeals can be settled by

• the Officer of the Board and the appellant reaching agreement
• the appellant withdrawing the appeal or
• the Tax Appeal Commissioners.

Further details can be found in the Decisions and Appeals Guide.