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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: Inhibition of six-monthly payment requests

Section 3 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999

Two years unpaid Class 2 National Insurance contributions

Using the authority of HMRC’s collection and management powers, HMRC will inhibit the issue of payment requests once there is the equivalent of two years of unpaid Class 2 National Insurance contributions (NICs). The person will remain liable to pay Class 2 NICs and can ask for a payment request at any time.

When the payment request is issued in

  • October 2011 if, prior to this date, six consecutive quarterly bills were issued and remain unpaid (covers maximum of one and a half years), the payment request issued in October 2011 will be the final payment request;
  • April 2012 if, prior to this five consecutive payment requests, (four quarterly bills covering a maximum of a year and one six monthly payment request), were issued and remain unpaid, the payment request issued in April 2012 will be the final payment request;
  • October 2012, if, prior to this four consecutive payment requests, (two quarterly bills covering a maximum of six months and two six monthly payment requests covering a maximum of eighteen months), were issued and remain unpaid, the payment request issued in October 2012 will be the final payment request;
  • April 2013, if, prior to this three consecutive payment requests, (three six monthly payment requests covering a maximum of eighteen months), were issued and remain unpaid, the payment request issued in April 2013 will be the final payment request.

This pattern will be repeated thereafter for every new payment date.

HMRC’s policy is that payment requests will stop being issued when a person has failed to pay the equivalent of two years Class 2 NICs. The onus rests with the person liable to pay to notify HMRC of certain changes, (see NIM20750), which may affect the amount and period of Class 2 NICs liability and whether payment requests are issued to the correct address. If a person fails to pay Class 2 NICs for which they are liable the fact that HMRC stops issuing payment requests does not take away their liability to pay.

Those persons can ask HMRC at any time for a payment request which will include arrears.

The inhibition of payment requests does not affect the time limits within which Class 2 NICs must be paid. Nor does it affect the date from which higher rates might apply, as described in NIM23002.

See NIM23010 if a person asserts that

  • HMRC should extend the time limits within which Class 2 NICs must be paid to count for contributory benefits, and/or
  • higher rates should not be applied

because they did not get payment requests.

Address out of date

Payment requests will not be issued to an out of date address. When HMRC gets a new address the issue of payment requests will resume.