Paragraph 15 Specified amount of earnings-related contributions payable by the employer

If after F117 days following the end of any F2... tax period the employer has paid no amount of earnings-related contributions to F3HMRC under paragraph 10 or 11 for that ... tax period and there is reason to believe that the employer is liable to pay such contributions, HMRC, upon consideration of the employer’s record of past payments F4whether of earnings-related contributions or of combined amounts, may to the best of F5their judgment specify the amount of earnings-related contributions F6or of a combined amount which F7they consider the employer is liable to pay and give notice to him of that amount.

For the purposes of this paragraph “combined amount” is an amount which includes earnings-related contributions due under these regulations and one or more of the following—

In arriving at an amount under paragraph (1), HMRC may also take into account any returns made by the employer under this Schedule in the tax period in question or earlier tax periods.

If, on the expiration of the period of 7 days allowed in the notice, the specified amount F11... or any part thereof is unpaid, the amount so unpaid—

The provisions of sub-paragraph (2) shall not apply if, during the period allowed in the notice, the employer pays to F14HMRC the full amount of earnings-related contributions which the employer is liable to pay under paragraph 10 or 11 for that ... tax period, or the employer satisfies HMRC that no amount of such contributions is due.

The production of a certificate such as is mentioned in sub-paragraph (2) shall, until the contrary is established, be sufficient evidence that the employer is liable to pay to F15HMRC the amount shown in it; and any document purporting to be such a certificate as aforesaid shall be deemed to be such a certificate until the contrary is proved.

Where the employer has paid no amount of earnings-related contributions under paragraph 10 or 11 for any ... tax periods, a notice may be given by F16HMRC under sub-paragraph (1) which extends to two or more consecutive ... tax periods, and this Schedule shall have effect as if those ... tax periods were the latest ... tax period specified in the notice.

A notice may be given by F17HMRC under sub-paragraph (1) notwithstanding that an amount of earnings-related contributions has been paid F18... by the employer under paragraph 10 or 11 for any ... tax period, if, after seeking the employer’s explanation as to the amount of earnings-related contributions paid, HMRC is not satisfied that the amount so paid is the full amount which the employer is liable to pay ... for that period, and this paragraph shall have effect accordingly, save that sub-paragraph (2) shall not apply if, during the period allowed in the notice, the employer satisfies HMRC that no further amount of earnings-related contributions is due for the relevant ... tax period.

Where, during the period allowed in a notice given by F19HMRC under sub-paragraph (1), the employer claims, but does not satisfy HMRC, that the payment F20... made in respect of any ... tax period specified in the notice is F21or includes the full amount of earnings-related contributions he is liable to pay to HMRC for that period, the employer may require HMRC to inspect the employer’s documents and records as if HMRC had called upon the employer to produce those documents and records in accordance with F22Schedule 36 to the Finance Act 2008 (information and inspection powers) and the provisions of paragraph 26A shall apply in relation to that inspection, and the notice given by HMRC under sub-paragraph (1) shall be disregarded in relation to any subsequent time.

Notwithstanding anything in this paragraph, if the employer pays any amount of earnings-related contributions certified by F23HMRC under it F24whether separately or as part of a combined amount and that amount exceeds the amount which he would have been liable to pay in respect of that ... tax period apart from this paragraph, he shall be entitled to set off such excess against any amount which he is liable to pay to HMRC under paragraph 10 or 11 for any subsequent ... tax period.

If, after the end of the year, the employer renders the return required by paragraph 22(1) and the total earnings-related contributions he has paid in respect of that year in accordance with this Schedule exceeds the total amount of such contributions due for that year, any excess not otherwise recovered by set-off shall be repaid.