NIM07515 - Class 1 NICs: interest: late payment interest

Section 101 of the Finance Act (FA) 2009

Section 101(3) FA 2009 applies interest at the late payment interest (LPI) rate from the LPI start date until the date of payment.

Section 101(4) FA 2009 sets the LPI start date as the date on which that amount (Class 1 NICs) becomes due and payable.

For Class 1 NICs that have not been paid by an employer, the LPI start date is the date on which the Class 1 NICs became due and payable, this being the 19/22 of the month following the end of the tax month in which the relevant earnings were paid, unless you are a quarterly payer, see NIM03003.

Example 1

Tax year 2021 to 2022.

Class 1 NICs not paid on earnings paid in Month 1, period 6 April 2021 to 5 May 2021.

Due date of payment for Month 1 is 19/22 May 2021.

LPI is charged on unpaid Class 1 NICs from 19/22 May 2021 until the date of payment.

Example 2

Tax year 2021 to 2022.

Class 1 NICs due in respect of earnings paid during Months 4 to 6 are paid on 1 December 2021.

Tax month	Tax period	Due date of payment	LPI charging period
4	6 July to 5 August 2021	19/22 August 2021	19/22 August to 1 December 2021
5	6 August to 5 September 2021	19/22 September 2021	19/22 September to 1 December 2021
6	6 September to 5 October 2021	19/22 October 2021	19/22 October to 1 December 2021

Example 3

Tax year 2021 to 2022.

Class 1 NICs due in respect of earnings paid by a quarterly payer during Months 4 to 6 are paid on 1 December 2021.

Tax month	Tax period	Due date of payment	LPI charging period
4	6 July to 5 August 2021	19/22 October 2021	19/22 October to 1 December 2021
5	6 August to 5 September 2021	19/22 October 2021	19/22 October to 1 December 2021
6	6 September to 5 October 2021	19/22 October 2021	19/22 October to 1 December 2021