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HMRC internal manual

National Insurance Manual

NIM34060 - Special cases: Volunteer Development Workers: Specific provisions relating to the payment of the special rate of Class 2 NIC: Late paid NICs and higher rate provisions: Example

During the 2001/02 tax year, a volunteer development worker decides that they wish topay the special rate of Class 2 NIC for the whole of the 1999/00 tax year (52 weeks). Theysatisfy the conditions in NIM34005 to pay the special rate forthat year.

The rates of the special NIC for:

  • the 1999/00 tax year was £3.30
  • the 2000/01 tax year was £3.35
  • the 2001/02 tax year is £3.60.

The year:

  • for which payment is due is 1999/00
  • immediately following that one is 2000/01
  • in which the Class 2 NICs are being paid is 2001/02.

As the volunteer development worker is:

  • paying the amount due for the 1999/00 year in the 2001/02;
  • which is after the end of the year (2000/01) immediately following the year for which the Class 2 NICs are being paid (1999/00),

the NICs are payable at the highest special Class 2 rate applicable during the period:

  • beginning with the week in respect of which the NIC is paid (ie, the 1999/00 tax year); and
  • ending with the day on which it is paid (ie, the 2001/02 tax year).

The highest weekly rate during that period is £3.60. So the total amount payable inrespect of 1999/00 is 52 weeks at £3.60 = £187.20.