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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
, see all updates

Class 2 National Insurance contributions: Entitlement to pay voluntarily: Payment methods

Regulation 89 and 90 of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004) as amended by regulation 1(2) and 6 of the Social Security Contributions (Amendment No. 3) Regulations 2011 (SI 2011 No 797)

NIM23501 explains who can pay Class 2 National Insurance contributions (NICs) voluntarily.

Direct debit

Both those persons excepted from liability and those persons entitled to pay Class 2 NICs for periods whilst working abroad, whether employed or self-employed, can pay by direct debit (DD) in the same way as those who are liable to pay Class 2 NICs. Class 2 NICs for the 2011/12 and later years can be paid either monthly or six monthly by DD, see NIM20251.

Payment requests issued six monthly

If persons granted Small Earnings Exception (SEE) from liability to pay Class 2 NIC (see NIM21000), tell HMRC that they want to pay Class 2 NICs voluntarily but they do not want to pay by DD, they can ask HMRC to send them six monthly payment requests. These are issued at the same time and in the same format as six monthly payment requests issued to those liable to pay Class 2 NICs. Self Employment Services in HMRC’s National Insurance Contributions and Employer Office (NIC&EO) deal with such requests.

In years which consist of 53 contribution weeks, the payment request issued in April following the end of the contribution year for which the person is entitled to pay Class 2 NICs can cover up to 27 weeks. If a person is not liable to pay Class 1 or Class 2 NICs in respect of that contribution year and 52 weeks of Class 2 NICs are needed to make the year a qualifying year for Basic State Pension contributory benefit purposes, then the person entitled to pay only need pay for 52 weeks, despite the fact that the contribution year consists of 53 contribution weeks.

Persons entitled to pay Class 2 NICs for periods whilst working abroad will not be issued with six monthly payment requests. Their requests to pay are processed by International Caseworker in HMRC’s National Insurance Contributions and Employer Office. See NIM33600 for more guidance.

Other payment methods

Where a person does not choose to pay Class 2 NICs voluntarily by DD or in response to six monthly payment requests (where such provision is made), they can ask HMRC what Class 2 NICs they can pay for a past period they were entitled, but not liable to pay.

Persons who want to pay Class 2 NICs for periods covered by SEE, should contact Self Employment Services in HMRC’s National Insurance Contributions and Employer Office (NIC&EO). Persons who want to pay Class 2 NICs for periods whilst working abroad, whether employed or self-employed, should contact International Caseworker in HMRC’s NIC&EO.