NIM72260 - Class 2 National Insurance contributions: payments: time limits for paying: contributory benefits
Regulations 1(2) and 89 of the Social Security (Contributions) Regulations (SSCR) 2001 (SI 2001 No. 1004)
Regulations 1(2) and 54 of the Social Security (Contributions) Regulations 1979 (SI 1979 No. 591)
Regulation 4 of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 (SI 2001 No. 769)
Section 20(1) of the Social Security Contributions and Benefits Act (SSCBA) 1992
Sections 1 and 2 of the Pensions Act 2014
Regulations 1(2) and 89 of the SSCR 2001
Regulations 1(2) and 54 of the SSCR 1979
From 6 April 2015, Class 2 National Insurance contributions (NICs) are paid on time for benefit purposes if they are paid on or before the “due date”, which is 31 January of the tax year immediately following the tax year for which the contributions are paid or payable.
From 6 April 2022, any Class 2 NICs that are treated as paid will be on time for benefit purposes if relevant profits are notified to HMRC by 31 January of the tax year immediately following the tax year for which the contributions would have been paid if liable or entitled to pay.
Before 6 April 2015, the due date for those entitled (but not liable) to pay Class 2 NICs was 42 days after the end of the year for which the contributions are paid. Before 6 April 2001, it was the date of the last day of the year for which the contributions are paid.
For those liable to pay it was the date by which payment falls to be made, for payment of that contribution see table below.
Due date for those liable to pay Class 2 NICs before 6 April 2015
| From | To | Due date |
|---|---|---|
| 6 April 1975 | 5 April 1993 | Payment was by affixing a stamp of the appropriate value to the contribution card of the contributor, not later than the last day in the contribution week in respect of which the contribution was due. |
| 6 April 1993 | 9 April 2011 | Payment for any week in a contribution quarter had to be made not later than 28 days after the specified date of notification shown on the notice. The notice was issued within 14 days after the end of the quarter. |
| 10 April 2011 | 5 April 2015 | Payment for any contribution week in a biannual contribution period had to be made not later than 31 January following the end of the first biannual contribution period and 31 July following the end of the second biannual contribution period. |
Paid late - Regulation 1(2), 4(1), (2) and (3) of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 (SI 2001 No 769), section 20(1) of the SSCBA 1992 and sections 1 and 2 of the Pension Act 2014
Class 2 NICs paid after the “due date” are treated for contributory benefits as follows:
- For a contribution week from 6 April 1983 onwards:
- if paid after the end of the sixth year following the year in which liability for that contribution arises or in respect of which the person is entitled (but not liable) to pay it, they are treated as not paid; and
- if paid before the end of the sixth year following the year in which liability for that contribution arises or in respect of which the person is entitled (but not liable) to pay it, they are treated as paid on the date on which the payment is made.
- For a contribution week on or before 5 April 1983:
- if paid after the end of the second year following the year in which liability for that contribution arises or in respect of which the person is entitled (but not liable) to pay it, they are treated as not paid; and
- if paid before the end of the second year following the year in which liability for that contribution arises or in respect of which the person is entitled (but not liable) to pay it, they are treated as paid on the date on which payment is made.
Benefit Impact - Regulation 1(2),4(7) and (8) of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 (SI 2001 No 769) section 20(1) of the SSCBA 1992 and sections 1 and 2 of the Pensions Act 2014
For the purpose of entitlement to any contributory benefit, Class 2 NICs paid within the time specified in paragraphs 2(a)(ii) and b(ii) above shall be treated:
- for the purpose of entitlement in respect of any period before the date on which the payment of the contribution is made, as not paid; and
- subject to the following paragraph, for the purpose of entitlement in respect of any other period, as paid on the date on which the payment of the contribution is made.
For the purpose of determining entitlement to a contribution-based Jobseeker’s Allowance (JSA) or a contribution-based Employment and Support Allowance (ESA), Class 2 NICs paid within the time specified in paragraphs 2(a)(ii) and (b)(ii) above shall be treated:
- as not paid in relation to the benefit claimed in respect of any day before the expiry of a period of 42 days (including Sundays) commencing with the date on which the payment of that contribution is made; and
- as paid at the expiry of that period in relation to entitlement to such benefit in respect of any other period.
Enquiries about the effect of late payment of Class 2 NICs on benefits should be referred to DWP.
Example 1
Hank was liable to pay Class 2 NICs for tax year 2014 to 2015 and paid by biannual bill. He received the notice to pay Class 2 NICs for the second biannual contribution period (the last 26 weeks in tax year 2014 to 2015), on time but did not pay his Class 2 NICs until 16 January 2016.
As the contributions were paid after the due date (31 July 2015), they were treated as paid on 16 January 2016. For entitlement to contribution-based ESA and JSA purposes, they were treated as paid on 28 February 2016.
Example 2
Darcy was liable to pay Class 2 NICs for the 2015 to 2016 tax year but did not pay them until 17 January 2017.
As the contributions were paid before the due date (31 January 2017), they were treated as paid on time for any contributory benefit including JSA and ESA.
Higher rates and penalties
Before tax year 2015 to 2016, a self-employed person who was liable to pay and paid Class 2 NICs late may have had to pay them at the higher rate, see NIM23002.
From tax year 2015 to 2016, a self-employed person who is entitled but not liable to pay Class 2 NICs and pays late may also have to pay them at the higher rate, see NIM72150.
From tax year 2015 to 2016, a self-employed person who is liable to pay Class 2 NICs through Self Assessment and pays late will be subject to late payment penalties and interest (see NIM70001 and NIM70800).
For extended time limits to pay:
NIM72250 - time limits for paying: ignorance or error and due care and diligence
NIM72200 - payments: when higher rate provisions do not apply
NIM23003 - extending the time limits for paying voluntary Class 2 NICs
NIM23004 - accepting Class 2 NICs as paid at an earlier date
NIM23005 - time limits for paying: ignorance or error and due care and diligence
NIM72270 - extended time limits to pay voluntarily