DMBM678440 - Summary Proceedings (Sc): Small claims - defended claims for PAYE/NIC: Class 1/1a NIC liability disputed

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In proceedings involving Class 1/1a National Insurance Contributions (NICs) you may receive a defence which questions

  • whether a person for whom you are claiming contributions is an employed person or
  • what contributions, if any, are payable.

Section 117A of the Social Security Administration Act 1992 provides that this is not a matter for the court to determine. These are questions that must be determined by an officer of the board making a decision under Section 8 of the Social Security Contributions (Transfer of Functions etc Act 1999). You should

  • explain these facts to the court,
  • advise that it may take some time to have the matter determined and
  • ask them to sist the case (DMBM675100).

Where the court is unwilling to grant a sist you should request that the court grant a continuation for at least three months (DMBM675100).

In all cases you must then, as a matter of urgency, refer all your papers together with a full report of the hearing to HMRC Solicitors Office.