ECH22091 - Settlement: By NIC Decision
Most EC cases will be concluded by agreement through Class 6 settlements.
Section 8 of the Social Security Contributions (Transfer of Functions) Act 1999
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 for NICs and Statutory Payments Guide (DANSP) should be followed in all cases.
There are three stages to the decisions and appeals process:
Stage 1 - The Informal Stage
You offer 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 HMRC Decision Maker. There are 30 days in which to appeal.
Where there is evidence of a liability to a penalty you 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 penalties (ECH21135).
In contentious cases or where an appeal is received
- commence formal action to raise penalties (ECH21135)
- write to the employer to advise that this is being done.
Stage 3 - The Appeal
Appeals can be settled by
- the Officer of HMRC and the appellant reaching agreement (either without, or after a review)
- the appellant withdrawing the appeal or
- the Tax Appeal Tribunal.
Further details can be found in the Decisions and Appeals for NICs and Statutory Payments Guide.
