DANSP38400 | Notices of decision: Wording of decisions about extension of time limits to pay Class 3 National Insurance contributions

Regulation 50(2) of the Social Security (Contributions) Regulations 2001 (SSCR 2001) (SI 2001 No. 1004)

DANSP23300 explains that appealable decisions can be issued which tell a person whether the condition in regulation 50(2) of the SSCR 2001 is satisfied. That condition, if satisfied, allows the time limit for paying Class 3 National Insurance contributions (NICs) to be extended.

Persons named in a decision

The DAA1(A) should be issued to the person who wants to pay Class 3 NICs.

Period covered by a decision

When you issue such a decision refer to the tax year or tax years for which the contributor wants to pay Class 3 NICs.

Example of wording

The example below applies the legal requirements and general principles for wording decisions in DANSP29200 and DANSP29300.

Facts

Mr Man recently reached State Pension age but is not entitled to a 100% State Pension (SP), he is one qualifying year short. He establishes that the most recent tax year which is not already a qualifying year is the 2000 to 2001 tax year, so he wants to pay Class 3 contributions to make the year qualify for SP.

The specified time limit within which Class 3 NICs for 2000 to 2001 must be paid ended on 5 April 2007. This time limit can be extended if the failure to pay was attributable to the contributor’s ignorance or error and that ignorance or error was not the result of his failure to exercise due care and diligence.

The facts show that the failure to pay was attributable to the contributor’s ignorance or error. HMRC sent him a deficiency notice in 2002 telling him that tax year 2000 to 2001 was deficient and he could pay Class 3 NICs. It also advised him of the time limit for paying Class 3 NICs for that tax year.

HMRC considers that failing to pay by the specified time limit was an error and was due to the contributor’s failure to exercise due care and diligence.

Decision

My decision is that:

You have not paid Class 3 contributions for the 2000 to 2001 tax year within the specified time limits.

The failure to pay by the specified time limit is attributable to your ignorance or error and that ignorance or error was the result of your failure to exercise due care and diligence.

You are not entitled to pay Class 3 contributions for the 2000 to 2001 tax year.

Commentary on example

The wording of the decision reflects the fact that the conditions in regulation 50(2) of the Regulations are not satisfied.

Before issuing such a decision, HMRC should have told the contributor what the specified time limit was and which conditions must be satisfied to allow a contributor to pay after the specified time limit.