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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 payments requested twice a year - General

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

Periods of Class 2 National Insurance contributions liability from 10 April 2011

Where a person pays Class 2 NICs they are liable to pay by DD they can choose to pay twice a year.

HMRC requests payments by DD in the

  • January following the start of the contribution year that there is any Class 2 NICs liability in respect of the first 26 contribution weeks of that year; and
  • July following the end of the contribution year that there is any Class 2 NICs liability in respect of the remainder of that contribution year.

The table below shows, for Class 2 NICs due in respect of the 2011/12 contribution year, when HMRC planned to request payment by DD and which period of liability each payment covers. HMRC informs those paying Class 2 NICs by DD the precise date that amounts will be collected from their bank or building society accounts before the amounts are collected.

Payment date by DD Period of liability Number of contribution weeks
     
13 January 2012 10/04/11 to 08/10/11 26
13 July 2012 09/10/11 to 07/04/12 26

Periods of Class 2 National Insurance contributions liability before 10 April 2011

A person could not choose to pay Class 2 NICs twice a year by direct debit for periods of Class 2 NICs liability before 10 April 2011. If they chose to pay by DD HMRC collected payments once a month in arrears of the period of Class 2 NICs liability.

Effect of payment dates on entitlement to state pension

See NIM20675.

Direct debit arrangements breakdown

See NIM20450 about what happens when Class 2 NICs are requested to be paid by DD but the arrangements break down.