NIM23001 - Class 2 National Insurance contributions: Time limits for paying: Background

Regulation 4 of the Social Security (Crediting and Treatment of Contributions and National Insurance Numbers) Regulations 2001 (SI 2001 No. 769)

Class 2 National Insurance contributions (NICs) were late for benefit purposes if they were paid outside certain time limits. When they were not paid on time, benefit may not have been paid for up to six weeks from the date the Class 2 NICs were paid. This varied for each type of benefit.

There was also a Late Notification Penalty (LNP) for late registration, see NIM23008.

The due dates for paying Class 2 NICs before 6 April 2015 are shown at NIM20550.

Class 2 NICs were treated as being paid on time for benefit purposes if they were paid before the first Sunday in January following the end of the contribution year in which they were due.

Example

Class 2 NICs were due in respect of the 2008 to 2009 tax year. The first Sunday in January following end of that tax year was 3 January 2010. If Class 2 NICs due for that tax year were paid before 3 January 2010 they were treated as paid on the due date.

Class 2 NICs were marked late (L) for benefit purposes if they were paid

  • on or after the first Sunday in January following the end of the tax year in which they were due, and
  • not later than six tax years from the end of the contribution year in which they were due.

Class 2 NICs paid late could be payable at a higher rate, see NIM23002

Example

Class 2 NICs due in respect of the 2003 to 2004 tax year. The first Sunday in January following the end of that tax year was 2 January 2005. If Class 2 NICs due for that tax year were paid on or after 2 January 2005 and before 6 April 2010, they were marked as late (L).

If Class 2 NICs were marked as late they were treated as paid on the day after the end of 42 days that started on the date on which the Class 2 NICs were paid.

Example

Class 2 NICs due in respect of tax year 2008 to 2009 were paid 29 March 2010. The first Sunday in January following the end of that tax year was 3 January 2010. The 42 day period started 29 March 2010 and ended on 9 May 2010. The Class 2 NICs were treated as paid on 10 May 2010.

Class 2 NICs due from 6 April 1983 were treated as not paid and marked extra late (LX) if they were paid more than six tax years after the end of the contribution year in which they were due. The contributions did not count towards long or short term benefits. However, the contributor still remained liable to pay extra late Class 2 NICs.

Example

Class 2 NICs were due in respect of tax year 2003 to 2004. If Class 2 NICs due for that tax year were paid on or after 6 April 2010, they were treated as not paid. For Class 2 NICs due before 6 April 1983, the NICs were treated as not paid if paid more than two tax years after the end of the year in which they were due.

Example

Class 2 NICs due for tax year 1982 to 1983 were treated as not paid and marked LX if paid on or after 6 April 1985.

Enquiries about effect of late payment of Class 2 NICs on benefits

Enquiries about how benefit is affected by late payment were referred to DWP.