The end of NIC

Now that Class 2 National Insurance contributions are paid in arrears how do HMRC know when to stop collecting contributions?

Our client was 65 earlier in the year and he tells us that the department advised him to cancel his direct debit payments at that date.

However our understanding is that because his 65th birthday was just in mid-April 2012 contributions are still due for 2011/12 which would be paid by direct debit up to July 2012.

This is because in what we understand was a ‘simplification measure’ payments are now made either six monthly on the self assessment payment dates of 31 January and 31 July (in respect of the year ended on the 5 April falling between those dates) or paid monthly but four months in arrears; i.e. so that the payment made in the July will relate to the previous month...