Is your Self-Employed status linked to your National Insurance Number?

Lately there have been a lot of clients who have been paying National Insurance Class 2 for years. However, the money was stuck in the system (not allocated amounts) and was not counted as their payments for National Insurance Contribution.

Why does this problem occur?

  1. You did not register correctly as self-employed.

There are several ways to register as self-employed and often you fill out the wrong form. You are given a UTR number but because of incorrect registration (for example with the wrong form), your UTR number is not associated with your National Insurance Number.

  1. Error in the HMRC system.

These errors usually occur for technical reasons.

It is very important to identify registration problems and solve them as soon as possible.

Firstly, your pension benefits are calculated in relation to the amounts of your National Insurance Payments.

Secondly, one of the requirements to obtain a long-term visa, settlement status, ILR or British citizenship is to provide a proof of payments to the National Insurance Contributions.

This means that if your Self-Employed status and your National Insurance Number are not linked, you risk not receiving the above documents or receiving them with a significant delay.

If you’re not sure if your Self-Employed status is linked to National Insurance, contact our consultants and we’ll be happy to help you verify and correct the situation.

To get a free consultation from our specialist, book a consultation on our website or call your nearest office.