NIM70850 | Class 2 National Insurance contributions: general information: appeals

Section 11A of the Social Security Contributions and Benefits Act (SSCBA) 1992
Section 8(1) of the Social Security Contributions (Transfer of Functions, etc.) Act (SSC(TF)A) 1999

Individuals who are liable for Class 2 National Insurance contributions (NICs) through Self Assessment (SA) will broadly (see below) be subject to the SA appeals process in respect of any Class 2 NICs due for tax years after 6 April 2015 (section 11A SSCBA 1992).

Section 8(1) SSC(TF)A 1999 will continue to apply to Class 2 NICs paid voluntarily by self-employed earners who have profits below the small profits threshold, including earners who are outside SA.

Where an individual is liable to Class 2 NICs through SA and has not appealed through the SA appeals process at an earlier date, they will be able to appeal through the existing NICs appeals legislation (section 8(1) SSC(TF)A 1999). This is to reflect the fact that discrepancies in NICs history are often not spotted until an individual is preparing for retirement.

It should be noted that self-employed earners liable for Class 2 NICs who fall within SA may therefore be able to appeal their Class 2 NICs outside of the window that the SA appeal process provides. This is because a decision cannot be made under section 8(1)(c) (liability to pay) or 8(1)(e) (whether contributions have been paid) SSC(TF)A 1999 in relation to Class 2 NICs until there is no longer any possibility of an appeal in relation to the same issues under Part 5 of the Taxes Management Act 1970. This is to ensure only one appeal can be heard on any matter covered by both provisions.

From 6 April 2024

There is no liability to pay Class 2 NICs.