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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

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HM Revenue & Customs
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Notices of decision: Wording of decisions about extension of time limits to pay Class 3 National Insurance contributions

DANSP23300 explains that appealable decisions can be issued which tell a person whether the condition in regulation 50(2) of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004) (the Regulations) is satisfied. That condition, if satisfied, allows the time limit for paying Class 3 National Insurance contributions (NIC) to be extended.

Persons named in a decision

The DAA1(A) should be issued to the person who wants to pay Class 3 NIC.

Period covered by a decision

When you issue such a decision refer to the tax year or tax years for which the contributor wants to pay Class 3 NIC.

Example of wording

The example below applies the legal requirements and general principles for wording decisions in DANSP29200 and DANSP29300.

Facts

A man who recently reached age 65 was not entitled to a 100% Basic State Pension (BSP). If he had one more qualifying year he would be entitled to 100% BSP. He establishes that the only year which is not a qualifying year in the last 10 years is the 2000/01 tax year, so he wants to pay Class 3 contributions to make the year qualify for BSP.

The specified time limit within which Class 3 NIC for 2000/01 must be paid ended on 5 April 2007. This time limit can be extended if the failure to pay was attributable to the contributor’s ignorance or error and that ignorance or error was not the result of his failure to exercise due care and diligence.

The facts show that the failure to pay was attributable to the contributor’s ignorance or error. The Inland Revenue sent him a deficiency notice in 2002 telling him

* the year was deficient,
* that he could pay Class 3 NIC, and
* when the specified period within which the contributions could be paid ended.
  
HMRC considers that failing to pay within the specified period was an error and was due to the contributor’s failure to exercise due care and diligence.
  
Decision
  
My decision is that:
  
You have not paid Class 3 contributions for the 2000/01 tax year within the period specified for their payment.
  
The failure to pay within the period specified is attributable to your ignorance or error and that ignorance or error was the result of your failure to exercise due care and diligence.
  
You are not entitled to pay Class 3 contributions for the 2000/01 tax year.

### Commentary on example

The wording of the decision reflects the fact that the conditions in regulation 50(2) of the Regulations are not satisfied.

Before issuing such a decision, HMRC should have told the contributor

* what the specified period was
* what conditions must be satisfied to allow a contributor to pay after the specified period
* why the contributor did not satisfy those conditions.