SolvedNIM20400 | Class 2 National Insurance contributions liability: Payment methods: Direct debit payments requested twice a year - General
From HM Revenue & Customs · National Insurance Manual
Regulation 90 of the Social Security (Contributions) Regulations 2001 (SI 2001 No. 1004)
Periods of Class 2 National Insurance contributions (NICs) liability from 10 April 2011
Where a person paid Class 2 NICs by DD they could choose to pay twice a year.
HMRC requested payments by DD in the
January following the start of the contribution year that there is any Class 2 NICs liability in respect of the first 26 contribution weeks of that year; and
July following the end of the contribution year that there is any Class 2 NICs liability in respect of the remainder of that contribution year.
The table below shows, for Class 2 NICs that were due in respect of the 2011/12 contribution year, when HMRC planned to request payment by DD and which period of liability each payment covered. HMRC informed those paying Class 2 NICs by DD the precise date that amounts would be collected from their bank or building society accounts before the amounts were collected.
| Payment date by DD | Period of liability | Number of contribution weeks |
|---|---|---|
| 13 January 2012 | 10/04/11 to 08/10/11 | 26 |
| 13 July 2012 | 09/10/11 to 07/04/12 | 26 |
Periods of Class 2 NICs liability before 10 April 2011
A person could not choose to pay Class 2 NICs twice a year by direct debit for periods of Class 2 NICs liability before 10 April 2011. If they chose to pay by DD, HMRC collected payments once a month in arrears of the period of Class 2 NICs liability.
Effect of payment dates on entitlement to State Pension
See NIM20675.
Direct Debit arrangements breakdown
See NIM20450 about what happened when Class 2 NICs were requested to be paid by DD but the arrangements broke down.