NIM20300 - Class 2 National Insurance contributions liability: Payment methods: Direct debit - General

Regulation 90 of the Social Security (Contributions) Regulations 2001 (SI 2001 No. 1004) (SSCR 2001)

Regulation 90 of SSCR 2001 makes provision for HMRC 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 SSCR 2001, 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, that is 31 January and 31 July.

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