Is my National Insurance record correct?

Many people will have recently completed their self assessment tax returns, and we wanted to make you aware of potential issues that may affect individuals, whether employed or self employed.

It is important where there is any change in employment status to ensure that the correct National Insurance contributions are being made as this is not an automatic process.

HMRC must have a record that a tax payer is self employed or they may cancel the Class 2 NIC liability. It is crucial that individuals pay this as it counts towards the state pension and some state benefits.

National Insurance contributions may not be applied correctly unless HMRC have noted your correct employment status. So whether you are starting or finishing self employment, setting up a partnership or a company, it is vital to make sure that your National Insurance Contributions are in order.

It is possible to check your National Insurance records by visiting the Gov.UK website. Additionally, we recommend that all clients should complete a BR19 form, which is also available on Gov.UK in order to confirm their State Pension entitlement.

Please do contact us for further information on tax efficient retirement planning.