The above regulations came into force on 17 May 2004 and put in
place special provisions to apply for the six years 1996-97 to
2001-02 (inclusive). The time limits and applications of the higher
rates operate as normal for years before and after this period. The
special provisions do
not apply to voluntary Class 2 NICs.
Deficiency Notices were not issued for the years 1996-97 to
2001-02 and so contributors were not prompted to enquire into their
National Insurance record for those years. Before re- instating the
annual issue of Deficiency Notices in October 2004, Inland Revenue
ran a one- off exercise to issue Deficiency Notices for 1996-97 to
2001-02.
The above legislation allows everyone extra time to pay Class
3 NICs for 1996-97 to 2001-02 and removes the higher rate
provisions for these years. This gives effect to the policy
decision that no one should be disadvantaged by the late issue of
Deficiency Notices for the years 1996-97 to 2001-02.
The time limits for 1996-97 to 2001-02 depend on when the
contributor reached State Pension age.
Provided Class 3 NICs are paid by these dates, they will also be payable at the rate that originally applied to the relevant year(s).
