SolvedNIM72450 | Class 2 National Insurance contributions: payments: Direct Debit requested twice a year
From HM Revenue & Customs · National Insurance Manual
Regulation 90 of the Social Security (Contributions) Regulations 2001 (SI 2001 No. 1004)
Where a person is entitled to pay Class 2 NICs by Direct Debit (DD) (see NIM72300) they can choose to pay twice a year.
HMRC requests 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 when HMRC requested payment by DD and which period of liability each payment covers for Class 2 NICs due in respect of the 2015 to 2016 contribution year. HMRC informs those paying Class 2 NICs by DD the precise date that amounts will be collected from their bank or building society accounts before the amounts are collected.
| Payment date by Direct Debit | Period of liability | Number of contribution weeks |
|---|---|---|
| 8 January 2016 | 12/04/15 to 10/10/15 | 26 |
| 8 July 2016 | 11/10/15 to 09/04/16 | 26 |
For the effect of payment dates on entitlement to State Pension, see NIM72500.
The DD method of payment is available only to those self-employed earners not within Self Assessment.