NIM07066 | Class 1 NICs: Payments made under employment legislation: Re-allocating primary NICs paid on a payment made under a reinstatement order, a re-engagement order, an order for the continuation of a contract of employment or a protective award

Regulation 5(b) Social Security (Contributions) Regulations 2001

In order to protect or enhance their benefit/pension position, an employee may request that NICs paid on a payment made under:

• a re-instatement order (see NIM07020 – NIM07021);

• a re-engagement order (see NIM07030 – NIM07031);

• an order for the continuation of a contract of employment (see NIM07040 onwards);

• a protective award (see NIM07050 onwards)

are treated as paid in an earlier tax year to the one in which the NICs were actually paid. Such a request should be made in writing.

The situations in which NICs may be re-allocated are as follows:

• the period to which the payment relates falls wholly in a tax year other than the one in which the NICs were paid (see NIM07067);

• the period to which the payment relates falls partly in the tax year in which the NICs were paid and partly in one or more other tax years (see NIM07068);

• the period to which the payment relates falls wholly in two or more years other than the one in which the NICs were paid (see NIM07069).

For:

• guidance on the information required in order to apportion the amount of primary NICs paid, see NIM07070

• an example of how to apportion the amount of primary NICs paid, see NIM07071

• guidance on adjusting the employee’s NI account, see NIM07072.