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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
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Class 2 National Insurance contributions: Time limits for paying: When higher rates do not apply

Regulation 65(2) of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004)

Higher rates will not apply and contributions will be payable at their original rate if the two tests set out in the regulation are both satisfied.

  • The first test is that the failure to pay the contributions within the time limits was due to the contributor’s ignorance or error.
  • The second test is that ignorance or error was not caused by the contributor failing to exercise due care and diligence.

NIM23005 shows how the tests are satisfied. The first test must be satisfied before the second test can be applied. If there is no ignorance or error, there is no need to establish due care and diligence.

See NIM23010 if a person asserts that the higher rates should not be applied because HMRC did not issue payment requests.