½Û×ÓÊÓƵ

Underpayments

HMRC guidance sets out that any underpayments of NIC should be made to HMRC as soon as possible¹. Any shortfall in deductions made by the employer from one payment of earnings may be recouped by him from a subsequent payment to the same employee in the same tax year, provided that²:

1. Ìý

   (a)ÌýÌýÌýÌý the under-deduction arose from an error made by the employer in good faith; or

2. Ìý

   (b)ÌýÌýÌýÌý the earnings in respect of which the under-deduction occurred are payable in accordance with employment protection legislation (see Division E4.1, E8.912) and only treated as earnings by virtue of SSCBA 1992, s 112; or

3. Ìý

   (c)ÌýÌýÌýÌý (prior to 6 April 2016), the under-deduction is due to the cancellation, variation or surrender of a contracting-out certificate relating to the employment. From 6 April 2016 contracting-out ceased; or

4. Ìý

   (d)ÌýÌýÌýÌý the earnings in respect of which the under-deduction occurred represent sick pay paid by another employer³; or

5. Ìý

   (e)ÌýÌýÌýÌý the earnings in respect of which the under-deduction occurred, although