NIM25033 - Class 3 NICs: Time limits for paying Class 3 NICs: When higher rates do not apply

Regulation 65(3), Social Security (Contributions) Regulations 2001

Higher rates will not apply and contributions will be payable at their original rate if the two tests set out in the regulation are both satisfied.

• The first test is that the failure to pay the contributions within the time limits was due to the contributor’s ignorance or error.
• The second test is that ignorance or error was not caused by the contributor’s failing to exercise due care and diligence.

How the tests are satisfied is shown at NIM25031.

The first test must be satisfied before the second test can be applied. If there is no ignorance or error, there is no need to establish due care and diligence.