NIM72200 | Class 2 National Insurance contributions: payments: when higher rate provisions do not apply

Regulation 65(2) of the Social Security (Contributions) Regulations 2001 (SI 2001 No. 1004)

Higher rates will not apply and Class 2 National Insurance contributions (NICs) are payable at their original rate if the 2 tests set out in the regulation are both satisfied.

• The first test is that the failure to pay the contributions within the time limits was due to the contributor’s ignorance or error.

• The second test is that this ignorance or error was not caused by the contributor failing to exercise due care and diligence.

NIM72250 shows how the tests are satisfied. The first test must be satisfied before the second test can be applied. If there is no ignorance or error, there is no need to establish due care and diligence.

See NIM23010 if a person asserts that the higher rates should not be applied because HMRC did not issue payment requests.