Class 2 NIC changes

Changes to payment dates - Class 2 National Insurance contributions

From April 2011, payments for your Class 2 National Insurance contributions will become due on 31 January and 31 July, the same as a Self Assessment tax bill.

Payments made by internet/telephone banking, CHAPS, Bank Giro, Post Office or post

You will receive just two payment requests from HM Revenue & Customs (HMRC) in the year (instead of four bills) in October and April, showing payments due by 31 January and 31 July respectively. You do not need to wait until the due date to make payment.

Payment made by Direct Debit

To meet the new due by dates, collection of monthly Direct Debit payments will be delayed by HMRC to bring the payment dates into line. This means that:

for the first year only, monthly Direct Debits will stop for a short period and then start again
Class 2 contributions due for April 2011 will be requested from your bank in August 2011
payments thereafter will be monthly unless you choose to pay 6 monthly from April 2011

A new option to pay by 6 monthly Direct Debit, collected in January and July each year, will be available from April 2011 for those who do not wish to spread their payments.

For those affected by these changes detailed information will be issued via a series of special mail shots in the coming weeks.

Paying your Class 2 NICs by Direct Debit has many advantages

it is safe and secure
it is convenient as your payments are taken straight out of your account
you pay monthly or, if you prefer, from April 2011 six monthly
payments are always in arrears of your liability
if you need to claim employment and support allowance for a while your payments will be reduced automatically
HMRC will tell you in advance about any changes in rates, and what they will be taking from your account
you can cancel at any time and you have the safeguards of the Direct Debit Guarantee
depending on the type of bank account you have, it can be cheaper to pay by Direct Debit than by cheque

A Direct Debit is easy to set up - you just need a suitable account at a bank or building society. If you want to pay your Class 2 NICs by Direct Debit follow the link below to find out what to do.

Paying self-employed Class 2 National Insurance by Direct Debit