This guide explains the available options for paying Class 2 National Insurance contributions.
HM Revenue & Customs (HMRC) recommends that you pay all of your Class 2 National Insurance contributions electronically. HMRC counts all of the payment methods below as electronic apart from payment by post. Paying electronically:
On this page:
From 16 December 2011 HMRC will be able to accept payments made using the Faster Payments Service (FPS).
FPS is a service that has been introduced by the banking industry that allows payments by internet or telephone banking to be received on the same or next day, provided the value of the payment does not exceed the limit set by your own bank or building society.
Before making a payment using FPS you should contact your bank or building society to confirm the services available to you, any daily value limits and latest cut off times for making a payment.
More about Faster Payments Service
From April 2011, payments for your Class 2 National Insurance contributions become due on 31 July and 31 January, the same as Self Assessment tax
If you receive quarterly bills from HMRC this change means that you will receive your final quarterly bill in April 2011. This will cover the period 9 January 2011 to 9 April 2011. After this HMRC will issue two payment requests (instead of four quarterly bills) in October and April showing payments due by 31 January and 31 July respectively.
There will also be changes if you pay by Direct Debit. To meet the new due dates, collection of Class 2 National Insurance contributions by monthly Direct Debit will be delayed by HMRC to bring the payment dates into line with the dates income tax is payable under Self Assessment. This means that:
A new option to pay by six monthly Direct Debits, collected in January and July each year, is now available for those who do not wish to spread their payments.
From April 2011 if you're self-employed you can pay your Class 2 National Insurance either monthly or six monthly by Direct Debit, or pay in response to payment requests HMRC issue in October and April. The table below shows the due dates for payment of Class 2 National Insurance contributions for 2011-12 . You can also make one-off payments for any arrears you may owe.
| Payment request issue date | Period covered by payment requests | Number of contribution weeks | Due date of payment |
|---|---|---|---|
| October 2011 | 10/04/11 to 08/10/11 | 26 | 31/01/12 |
| April 2012 | 09/10/11 to 07/04/12 | 26 | 31/07/12 |
If a payment request includes Class 2 National Insurance contributions for periods whose due date of payment has passed you must pay those contributions immediately or HMRC may take action to enforce payment.
The example below shows what will be included on a payment request issued in October 2011 if a person has not paid the Class 2 National Insurance contributions they were liable to pay for the 2010/11 year.
| Payment request issue date | Period of liability | Number of contribution weeks | Due date of payment |
|---|---|---|---|
| 24 October 2011 | 10/04/11 to 08/10/11 | 26 | 31/01/12 |
| 11/04/10 to 09/04/11 | 52 | To be paid immediately |
If you do not pay your Class 2 National Insurance contributions by the due date they may become due at a higher rate and adversely affect entitlement to contributory benefits.
See the section below on Paying by Direct Debit for tables of monthly and six monthly payment dates and rates.
More about self-employed tax and National Insurance
Direct Debit is an easy and secure way of paying your self-employed Class 2 National Insurance contributions. Payment is collected automatically from your bank or building society either each month four months in arrears, or six monthly in January and July.
HMRC recommends that you pay by Direct Debit because:
Find out about the Direct Debit Guarantee (PDF 49K)
From April 2011 monthly payments will be collected four months in arrears. This means that payments will start in August 2011 and end in July each year. So if you pay monthly by Direct Debit HMRC will not collect any amounts by Direct Debit in May, June or July 2011.
If you would like to switch to paying by six-monthly Direct Debit you will need to complete a new Direct Debit Instruction (DDI).
To set up payment by Direct Debit you need to complete a DDI and return it to HMRC - don't forget to sign and date your instruction. Once the Direct Debit has been set-up payments will be collected for as long as you want, please see the tables below for the collection dates and amounts for the current tax year.
You can download a DDI using the links below.
Newly self-employed – download a DDI form (CA5601) (PDF 217K)
Already registered as self-employed – download a DDI form (CA5611) (PDF 142 KB)
You should use this form if:
It can take at least 21 days to set up a Direct Debit with your bank or building society, but HMRC will write to you in advance and confirm the date of the first payment.
If you have asked us to collect contributions from the start of your self-employment with the first payment collected by Direct Debit, the first payment may cover more than one month.
| Date of payment | Amount |
|---|---|
| 12 August 2011 | £10.00 |
| 9 September 2011 | £12.50 |
| 14 October 2011 | £10.00 |
| 11 November 2011 | £10.00 |
| 9 December 2011 | £12.50 |
| 13 January 2012 | £10.00 |
| 10 February 2012 | £10.00 |
| 9 March 2012 | £12.50 |
| 13 April 2012 | £10.00 |
| 11 May 2012 | £12.50 |
| 8 June 2012 | £10.00 |
| 13 July 2012 | £10.00 |
| Total £130.00 |
| Date of payment | Amount |
|---|---|
| 13 January 2012 | £65.00 |
| 13 July 2012 | £65.00 |
| - | Total £130.00 |
Only the amounts shown in the tables above will be collected by Direct
Debit.
HMRC won't collect any other amounts in this way.
The amount paid by Direct Debit will appear on your bank statement with the description 'HMRC NI – DD’.
If you would like more information and advice about paying by Direct Debit you can call HMRC's National Insurance Self-Employed Helpline on Tel 0845 915 4655 (lines are open 8.00 am to 5.00 pm, Monday to Friday).
You can use your bank or building society services to pay by:
Internet banking – select ‘HM Revenue & Customs’ from your bank/building society’s beneficiary list (sometimes called a ‘payee list’) or use HMRC’s bank account details to set up a manual instruction. You also need to enter your Class 2 National Insurance contributions reference and the payment amount. When using your bank or building society’s beneficiary list, please ensure you take care in selecting the correct HMRC entry for the payment you want to make.
Telephone banking – phone your bank/building society and give them HMRC’s bank account details, your Class 2 National Insurance contributions reference and the amount to pay.
Faster Payments – this is a service that has been introduced by the banking industry for sending payments initiated by internet or telephone banking on the same or next day, providing the value of the payment does not exceed the value limit set by the sending bank.
Before making a payment you should contact your bank or building society to confirm the services available to you, any daily value limits and the latest cut off times for making a payment.
More about the Faster Payments Service
Information about Faster Payment limits (Opens new window)
CHAPS – this enables you to tell your bank to make a payment that will reach HMRC on the same day provided you initiate the payment within the time specified by your bank (usually between 9.00 am and 3.00 pm). CHAPS payments are more expensive than other payment methods but may be of benefit if you are making very large payments.
To pay your Class 2 National Insurance contributions using any of the above payment methods you'll need to set up the payment details with your bank. You'll need to supply them with:
When making a payment to HMRC please make sure you always use the correct bank account details and reference number. And that your bank has confirmed that your payment has been made successfully.
If you make a mistake with the sort code or account number there may be a delay before your record is credited or your payment may not be received at all. That could mean you are charged a penalty, interest or surcharge for late payment.
When paying by internet or telephone banking, Faster Payments
or CHAPS you should only use the bank account details shown below and
not the account number shown on the front of your HMRC payslip as this
sort code is only for payments made by Bank Giro or at a Post Office.
| Sort code | Account number | Account name |
|---|---|---|
| 08 32 20 | 12001004 | HMRC NICO Telephone Banking |
If your bank asks for the address of the bank to which payment is being made please use:
Citi
Citigroup Centre
Canada Square
Canary Wharf
London
E14 5LB
Note: You cannot make payments of Self Assessment to this account, if you also want to pay your Self Assessment by internet or telephone banking you need to use the account details given in the guide ‘How to pay Self Assessment’.
When making your payment you will need your reference number. This is shown on the letter HMRC sends you. The reference number is made up of 18 digits - for example 110362020162306149. This reference is only an example and should not be used to make a payment (the first two characters are always '11' and the final character can be an 'X'). It is important that you show the reference with no gaps between the characters otherwise it could lead to delays in updating your account.
You can check the number using HMRC's online checker tool below.
Check your Class 2 National Insurance contributions reference using HMRC's reference checker
If your bank or building society offers the Bank Giro service you can make a payment at your own bank branch by cheque or cash. HMRC treats any payment made by Bank Giro as electronic.
If paying this way please:
To allow for possible delays in bank processing (for which HMRC is not responsible) please allow at least three bank working days for your payment to reach them. Bank working days are Monday to Friday excluding bank holidays.
You can make a payment at the Post Office by cheque, cash or debit card without charge. HMRC treats any payment made at the Post Office as electronic.
If paying this way please:
To allow for possible delays in bank processing (for which HMRC is not responsible) please allow at least three bank working days for your payment to reach them. Bank working days are Monday to Friday excluding bank holidays.
HMRC highly recommends that you make your payments electronically using one of the methods described elsewhere in this guide. Electronic payments are generally more efficient and secure, provided you use an accurate reference number.
However if paying by post please:
If you want to send one cheque to pay both your Class 2 National Insurance contributions and Self Assessment please send both your Class 2 National Insurance contributions and Self Assessment payslips with your cheque. This will enable HMRC to update your record promptly and avoids any benefit impacts due to late notification.
To allow for possible postal delays (for which HMRC is not responsible) please allow at least three working days for your payment to reach them.
HM Revenue & Customs
National Insurance Contributions and Employer Office
Benton Park View
Newcastle upon Tyne
NE98 1ZZ
HMRC will only accept a postdated cheque up to three months before payment is due unless you have a prior arrangement with the HMRC office dealing with your contributions.
Because of the highly automated operations used for processing postal payments HMRC can only identify a postdated cheque if there is a letter with it.
If you don't send a covering letter HMRC won't recognise that the cheque is postdated and will present it straight away.
You can pay your self-employed Class 2 National Insurance contributions electronically from a bank account outside of the UK.
You'll need to give your bank or building society HMRC's bank account details. You should check with your bank or building society to see how long it takes to transfer a payment.
Please take care if you need to enter our bank account details. If you make a mistake with the sort code or account number there may be a delay before your record is credited or your payment may not be received at all.
The account name you should use is ‘GBS Re NICO Receipts HMRC’.
| Currency | International Bank Account Number (IBAN) | SWIFT Bank Identifier Code (BIC) |
|---|---|---|
| Sterling or foreign currencies (including euro) | GB96CITI08330012535777 |
CITIGB2L |
Note: Where an IBAN is shown you must give this number as well as the SWIFT BIC.
If your bank asks for the address of the bank to which payment is being made please use:
Citi
Citigroup Centre
Canada Square
Canary Wharf
London
E14 5LB
Note: You cannot make payments of Self Assessment to this account, if you also want to pay your Self Assessment from an overseas bank account you need to use the account details given in the guide Paying Self Assessment
The account details above were updated on 1 June 2010. Please note these for future reference. You should also arrange to update any templates or transactions that you have stored for online banking purposes.
When making your payment you will need your reference number. This is shown on the letter HMRC sends you. The reference number is made up of 18 digits - for example 110362020162306149 (this reference is only an example and should not be used to make a payment). The first two characters are always '11' and the final character can be an 'X'. It is important that you show the reference with no gaps between the characters otherwise it could lead to delays in updating your account.
You can check the number using HMRC's online checker tool below.
Check your Class 2 National Insurance contributions reference using HMRC's reference checker
To minimise costs to all taxpayers HMRC does not automatically issue receipts for payments.
If you have made your payment electronically using one of the methods described elsewhere in this guide you can confirm from your own bank or building society statement that payment has cleared your account.
However, if you are paying HMRC by post and you need to ask for a receipt, include a separate letter with your payment. HMRC cannot identify any instructions written on payslips as they are processed automatically.
If you pay your Class 2 National Insurance contributions electronically you will not need a payslip, unless you pay at a bank or Post Office. HMRC recommends that you pay electronically using one of the methods described elsewhere in this guide. Electronic payments are generally more efficient and secure, provided you give HMRC an accurate reference number.
However, if you are paying by post and you don't have a payslip you should tell HMRC:
If you want to send one cheque to pay both your Class 2 National Insurance contributions and Self Assessment but you do not have your Self Assessment payslip you will also need to tell HMRC:
You should use the contact details described in the Paying by post section of this guide.
Find out what you can do if you have a problem making a payment
