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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
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Class 2 National Insurance contributions liability: Payment methods: Direct debit - General

Legislation

Regulation 90 of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004) (SSCR) makes provision for HMRC’s Board to approve arrangements under which Class 2 National Insurance contributions (NICs) are paid at times or in a manner different to those who pay after getting payment requests twice a year, see NIM20550. One of those arrangements is the payment of Class 2 NICs by direct debit (DD). There is nothing in the SSCR, other than regulation 90, which makes reference to the payment of Class 2 NICs by DD.

Periods of liability before 10 April 2011

Class 2 NICs payable by DD for periods of liability before 10 April 2011, were requested by DD approximately one month in arrears. So Class 2 NICs due for the period of liability from 6 March 2011 to 9 April 2011, which covers 5 contribution weeks, were requested by DD on 15th April 2011.

Periods of liability starting 11 April 2011 or later

Class 2 NICs payable by DD for periods of liability starting 10 April 2011 (the start of the 2011/12 contribution year) or later, are requested either

  • monthly, but four months in arrears - see NIM20350; or
  • twice a year, six monthly in arrears - see NIM20400.

This aligns payment dates for Class 2 NICs with the dates income tax and Class 4 NICs are due to be paid under Self-Assessment, i.e. 31 January and 31 July.

A person who paid monthly by DD for periods of liability before 10 April 2011 could, if still liable for Class 2 NICs for periods of liability after 9 April 2011, choose to switch from monthly payment by DD (see NIM20350) to twice a year by DD (see NIM20400).