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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

Wording of decisions: National Insurance contributions liability decisions: Period covered by Class 2 National Insurance contributions liability decisions

DANSP30700 explains the general principles to apply when wording National Insurance contributions (NIC) liability decisions.

Class 2 NIC are due for contribution weeks not tax weeks. The period should start with the first day of the first contribution week (a Sunday) covered by the decision and end with the last day of the last contribution week (a Saturday) covered by the decision.

The example below shows how to word the decision.


The facts

A self-employed person alleges that he is not liable to pay Class 2 NIC because he has not earned enough. He was self-employed from 1 May 2006 to 31 August 2007. He has not paid any Class 2 NIC. HMRC considers that Class 2 NIC are due because no evidence has been produced to show that the person’s earnings were below the small earnings exception limit. The person wants to have the matter determined by a tribunal so you must issue a formal decision.

The decision

My decision is that:

You are liable to pay Class 2 contributions for the period from 30 April 2006 to 1 September 2007.

The amount you are liable to pay for the period from 30 April 2006 to 1 September 2007 is £168.00.

Commentary on decision

30 April 2006 is the Sunday of the contribution week that includes 1 May 2006, the date when the person’s self-employment started. 1 September 2007 is the Saturday of the contribution week that includes 31 August 2007, the date the person’s self-employment ended.