DANSP28100 | Notices of decision: who to address the notice of decision to

DANSP28000 explains the general principles of issuing a notice of decision. The following explains who to address the notice of decision to.

Liability to pay Class 1 secondary and primary National Insurance contributions (NICs)

Where the decision is about liability to pay Class 1 secondary and primary NICs we consider the secondary contributor (usually the employer) is liable to pay. The employer will be issued with a DAA1(A) decision.

DANSP41100 explains that a decision must state the name of every person in respect of whom it is made, so the employee(s) named in the decision will usually get a DAA1(B) notice of decision. However, where employees cannot be individually identified and, as explained in DANSP41200, a decision is issued to the employer, a DAA1(B) is not used.

In the following circumstances the notice of decision, DAA1(A) will need to be addressed to the employee and a DAA1(B) will not be needed:

• an employee working in the UK is liable to pay primary Class 1 NICs and there is no liable secondary contributor

• the decision tells an employee that the non-payment of primary Class 1 NICs is due to their connivance or negligence

Liability to pay Class 1A or Class 1B NICs

Where the decision is about Class 1A or Class 1B NICs these will be issued to the person liable to pay the NICs.

Usually, employees are not named in such decisions because they are not liable to pay Class 1A or Class 1B NICs, therefore, the DAA1(B) is not issued. However, if you do need to name any employees in a decision you will also need to issue a DAA1(B) to each of the named employees.

In cases where there is a dispute about who is liable to pay and two or more parties are involved, if more than one party is named in the decision, the DAA1(B) should be issued to the other parties named in the decision.

Class 2, 3 or 4 NICs

There is only one person involved in decisions relating to Class 2, 3 or 4 NICs - the person who has either paid the NICs, wants to pay the NICs, or is liable to pay the NICs, whichever is appropriate. The notice of decision DAA1(A) should be issued to that person. DAA1(B)s will not be used in such cases.

Services provide by a Managed Service Company (MSC)

A notice of decision DAA1(A) should be issued to the MSC deemed as the secondary contributor and the DAA1(B) to the worker where the decision is about:

• whether the services of an individual (the worker) are provided by a managed service company

• the worker, or an associate of the worker, receives a payment or benefit which can reasonably be taken to be in respect of the services

• the payment or benefit is not earnings derived from an employed earner’s employment of the worker with a MSC

Statutory payments

Where the decision includes a decision about entitlement to statutory payments, address the DAA1(A) to the employee. If the decision also includes a decision about who is liable to pay send a DAA1(B) to the person liable to pay the statutory payments.

Where the decision is only about whether a person can recover statutory payments and if so the amounts and/or whether the person liable to pay statutory payments can claim NICs compensation, address the DAA1(A) to the person liable to pay. Employees should not be named in decisions so the DAA1(B) will not be issued.