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
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.