Self employment and NI

chocolate_ogre

Hello!
I recently registered as self employed but I have no idea if I'm also registered for Class 2 NI or not. I was registered for self-assessment by an accountant who I have since decided not to use (got pressured by parents but decided I cant afford it) and they didn't tell me if I was also registered for NI at the same time as I believe they can both me done off the same form?

What I would like to know is, is there a penalty for late registration for Class 2 NI as there is if you leave registering for self-assessment too late? I was planning on waiting for the biannual letter asking for payment of this of which I believe the next one would be April but unsure if this will leave me in trouble as I received my UTR just before Christmas.

Have I got this right or have I interpreted the HMRC website all wrong? I'm slightly baffled! I'm 23 and this is my first time dealing with tax and NI - I cant really afford to get myself into trouble!

bni

When you register as self-employed using HMRC's self employment helpline it will register you for Class 2 NICs and put you in to the scope for self assessment (if you aren't already). If you are unsure if you have been registered correctly, no harm in calling up the helpline with your UTR and checking their records.

I think Class 2 NICs are charged quarterly so you will get an invoice after the end of the quarter, but can then sign up for monthly direct debit (if you prefer).

meanbean

Hi, you are correct! After you register and get your UTR, HMRC then send you a letter stating amount due and when to pay. If you registered with them in December, you should get a letter after April billing you for the Dec to April period. They bill retrospectively for the previous 6 months. I went through the same wondering as you after getting my UTR but they do eventually contact you. You only incur a charge if you pay after the stated date - you should incur no charge as you have not had a payment letter yet.