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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

Decision types: Whether failure to pay Class 3 National Insurance contributions within time limits was due to ignorance or error: Non-application of higher rate provisions

Regulations 65(3) and 155A(2)(k) of the Social Security (Contributions) Regulations 2001

Regulation 155A(2)(k) of the Social Security (Contributions) Regulations 2001 (the Regulations) provides for HMRC officers to decide whether

  • the reason for a contributor’s failure to pay a Class 3 contribution within the period prescribed for its payment is his ignorance or error, and,
  • if so, whether that ignorance or error was due to his failure to exercise due care and diligence, as mentioned in regulation 65(3).

If the reason for the failure to pay the Class 3 National Insurance contributions (NIC) in the prescribed period was due to the person’s ignorance or error and not due to the contributor’s failure to exercise due care and diligence, they can pay Class 3 NIC at the rate applicable to the period for which the NIC are due, without applying higher rate provisions. For information about higher rate provisions see NIM25029.

For guidance about the wording of such a decision see DANSP39700.