DANSP15800 - Decision types: National Insurance contributions liability decisions: Protecting unpaid National Insurance contributions from becoming barred for recovery

Some decisions give those named in the decision the right of appeal, see DANSP15100.

Issuing a decision showing the National Insurance contributions (NIC) a person is liable to pay does not protect HMRC’s ability to enforce payment, if some or all of them remain unpaid when the decision is made.

If it is within three months of the sixth anniversary of the date any unpaid NIC were due, take action to protect

• all unpaid NIC, including any NIC not included in the decision, and
• any interest due on those NIC

from becoming barred for recovery. Inform the person liable to pay the unpaid NIC that you are taking such action. For guidance about protecting NIC debts see the Debt Management Banking Manual and the Compliance Operational Guidance.

Scotland

The Prescription and Limitation (Scotland) Act 1973 applies in Scotland and provides for a time limit of 20 years for collection of debts, including National Insurance contributions.

Noting papers to protect unpaid NIC

Disputes, especially, those involving an appeal, can take many months, and in some cases, years to resolve. Where these involve unpaid NIC which will become statute barred for recovery in the future, ensure that three months before the earliest bar date, action is taken to protect

• all of the NIC shown as due in the decision, even if these include some NIC which were due substantially less than six years ago, and
• any interest due on those NIC.