HC Deb 06 March 1986 vol 93 c243W
Mr. Michael Forsyth

asked the Secretary of State for Social Services wht is the normal practice regarding reassessment of previous years' liabilities under class 1 national insurance contributions, primary or secondary, where a Department of Health and Social Security inspector has re-classified a self-employed person as an employee under the terms of the Social Security Acts.

Mr. Major

The normal practice is to assess earlier liability under class 1 when a person previously paying class 2 contributions is re-categorised as an employee. However, full account is taken of all the circumstances before a decision is made to require payment by the employer of any amount due. Rulings by the Department's national insurance inspectors about liability to pay contributions, including rulings on the class of contributions due, are open to challenge by those affected if they wish, and then become questions for formal determination by the Secretary of State under section 93 of the Social Security Act 1975.