DANSP33100 - Notices of decision: Wording of National Insurance contributions liability decisions: Persons named in Class 1B National Insurance contributions liability decisions

DANSP30700 explains the general principles to apply when wording National Insurance contributions (NIC) liability decisions.

Class 1B NIC liability decisions should always be sent to the person liable to pay the NIC, see NIM18010 for information about the liable contributor. In most Class 1B cases this is the employer.

DANSP41100 explains that a decision is issued to all persons named in a decision. Earners should not be named in Class 1B NIC liability decisions because

• earners are never liable to pay Class 1B NIC, and
• Class 1B NIC are not used to determine any entitlement to social security benefits.

Whether a person is liable to pay Class 1B NIC has no affect on an earner.

The liable person will want to know how you have calculated the Class 1B NIC shown as due in the notice of decision. Clearly explain this in a covering letter.

For an example of a Class 1B NIC liability decision see DANSP33000.