Regulation 61B of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004)
Due to the unavailability of pension statements for the new State Pension introduced by the Pensions Act 2014, HMRC introduced regulation 61B of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004) to extend the time limits for paying voluntary Class 2 NICs for the contribution years 2006 to 2007 to 2015 to 2016.
The time limit was extended to 5 April 2023 but this only applies to those who:
- reach State Pension age on or after 6 April 2016
- are entitled to pay Class 2 NICs
- had not paid the Class 2 NICs before 6 April 2013
Those entitled but not liable to pay Class 2 NICs are self-employed earners:
- with a Small Earnings Exception – see NIM21044
- with profits under the small profits threshold (SPT) – see NIM70300
- with profits not chargeable to Income Tax under Chapter 2 of Part 2 of the Income Tax (Trading and Other Income) Act 2005, and who are not therefore required to pay Class 4 NICs under section 15 of the Social Security Contributions and Benefits Act 1992 – see NIM74001
- who are ministers of religion – see NIM74200
- who are examiners and moderators – see NIM74100
- who carry out property and investment business activity and pass the gainful (self-) employment test but not the trade, profession or vocation test – see NIM74250
The extended time limits also apply to those working abroad and paying voluntary Class 2 NICs – see NIM71150.
Higher Rate Provisions
Voluntary Class 2 NICs paid before 6 April 2019 for contribution years 2006 to 2007 to 2010 to 2011 were payable at the amount applicable for the 2012 to 2013 tax year; and for contribution years 2011 to 2012 to 2015 to 2016, they were payable at the amount applicable in the contribution year to which the payment relates. Voluntary Class 2 NICs paid between 6 April 2019 and 5 April 2023 are payable at a higher rate – see NIM72150.
Example
Mr Brooks is a self-employed earner with profits below the SPT and he pays Class 2 NICs for the 2015 to 2016 contribution year on 30 June 2022. These will be charged at the higher rate and will count for contributory benefit purposes.
