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HMRC internal manual

National Insurance Manual

Class 2 National Insurance contributions: general information: appeals

Section 11A of the Social Security Contributions and Benefits Act 1992 & Section 11A of the Social Security Contributions and Benefits (Northern Ireland) Act 1992
Section 8(1) of the Social Security Contributions (Transfer of Functions etc) Act 1999

Individuals who are liable for Class 2 NICs through Self Assessment will broadly (see below) be subject to the Self Assessment appeals process in respect of any Class 2 NICs due for tax years after 6 April 2015 (section 11A SSCBA 1992).

The existing appeals legislation (section 8(1) SSC(TF)A 1999) will continue to apply to Class 2 NICs paid voluntarily by self-employed earners who have profits below the small profits threshold, including earners who are outside the Self-Assessment system.

Where an individual is liable through Self Assessment and has not appealed through the Self Assessment appeals process at an earlier date, they will be able to appeal through the existing NICs appeals legislation (section 8(1) SSC(TF)A 1999). This is to reflect the fact that discrepancies in National Insurance contributions history are often not spotted until an individual is preparing for retirement.

It should be noted that self-employed earners liable for Class 2 NICs who fall within Self-Assessment may therefore be able to appeal their Class 2 NICs outside of the window that Self Assessment allows. This is because a decision cannot be made under section 8(1)(c) (liability to pay) or 8(1)(e) (whether contributions have been paid) SSC(TF)A 1999 in relation to Class 2 NICs until there is no longer any possibility of an appeal in relation to the same issues under Part 5 of the Taxes Management Act 1970. This is to ensure only one appeal can be heard on any matter covered by both provisions.