DANSP20000 - Decision types: Personal liability notices

Section 8(1)(h) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999

Article 7(1)(h) of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (SR 1999 No 671)

Section 121C of the Social Security Administration Act 1992

Section 115B of the Social Security Administration (Northern Ireland) Act 1992

HMRC officers can decide whether a director or employee, because of action attributable to fraud or neglect, is to be held liable for payment of unpaid contributions due from a company.

These decisions are required where a personal liability notice (PLN) is issued and disputed on the following grounds

  • all or part of the National Insurance contributions (NIC) included in the notice should not have been included,
  • the failure to pay the NIC was not as a result of fraud or neglect by the individual named,
  • the person named on the PLN was not an officer of the company at the time of the fraudulent or negligent failure to pay,
  • the level of the apportionment of the debt to the person named was unreasonable.

The notice of decision should include a decision about whether a director or employee is to be held liable for payment of NIC and a decision about the amounts paid.

Responsibility for the issue of PLN rests with the NIC Personal Liability Notice Team within Individuals Small Business Compliance (ISBC). See NIM12207.

Guidance about PLNs can be found in DMBM570160 and in NIM12201 onwards.

For wording of such decisions see DANSP38000.