Chapter DMBM523420
| Published date | 29 April 2016 |
| Record Number | DMBM523420 |
These are normal PAYE schemes where the employer has successfully registered for the Regional NIC Holiday Scheme. This scheme started on 6 September 2010 and is available to new businesses that start up during the period from 22 June 2010 to 5 September 2013. The only way to identify these cases is to check Employer Business Service (EBS) notes if you have access to this system.
PaymentsQualifying employers are entitled to deduct Class 1 NICs from in year PAYE payments due to HMRC.
NIC Holiday TeamThe NIC Holiday team deals with the registrations, issuing and processing of NIC Holiday Annual Return (Form E92).
The address of the team is:
National Insurance Contributions & Employers Office
NIC Holiday Team
Room BP4102
Chillingham House
Benton Park View
Longbenton
Newcastle Upon Tyne
NE98 1ZZ.
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End of Year Processing and Potential Underpayment Position on RecordEmployers who are participating in the scheme still show the total Class 1 NIC due on their Employer Annual Return (P35 and forms P14). They account for the NIC deducted on the NIC Holiday Return Form E92 and list the employee’s details on Form E89 (or equivalent).
The NIC Holiday team issue and manually process the NIC Holiday return by making an adjustment on EBS. Therefore, each employer who has deducted Class 1 NIC due to the Holiday scheme will have a potential underpayment on BROCS for at least the value of the NIC withheld until the adjustment is made and a P228 AMD is received.
To address this and to allow sufficient time for the NIC Holiday team to process NIC Holiday Returns the issue of a DN1P underpayment notice is inhibited for employers who have been successfully registered for the scheme before 11 March. There is no automatic process to inhibit the DN1P underpayment for employers registered after this date.
Action on receipt of a P228 chargeWhen the P228 charge is received on BROCS and there is an underpayment the next course of action will either be:
-
New IDMS LAN immediately if any in-year PAYE months were subject to Local Action before the P228 charge was received or if any of the following conditions apply. This is to safeguard any collection activity DMB has taken for the in year debt:
- Permanent Referred for Instruction case (PRFI)
- Insolvent
- Deceased
- Welsh Language case
- scheme is ceased
- the collection numeral is proper to PD Collection
- Simplified Q case
- Direct Payment Scheme
- Direct Collection Scheme
- Electoral Payment Scheme
- Taxed Award Scheme
- ...
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