Can I do a NICs check on myself?
As an individual or a business owner, understanding your National Insurance Contributions (NICs) is crucial for various reasons, such as planning your finances, claiming benefits, and preparing for retirement. However, the question remains: Can I do a NICs check on myself?
What is NICs?
Before diving into the question, let’s briefly explain what NICs are. National Insurance Contributions are taxes paid by individuals and employers to the UK government. The primary purpose of NICs is to fund various state benefits, such as the state pension, Jobseeker’s Allowance, and Employment and Support Allowance.
Types of NICs
There are different types of NICs, including:
- Employer’s NICs: Paid by employers on the salaries and wages of their employees
- Employee’s NICs: Paid by employees on their earnings above a certain threshold
- Self-Employed NICs: Paid by self-employed individuals on their profits
Can I do a NICs check on myself?
While it’s possible to perform a basic NICs check, it’s recommended to use official government resources or seek professional advice to ensure accuracy. Here are some dos and don’ts to consider:
- DO:
- Check your payslips or P60 forms for your NICs contributions
- Review your online account with HMRC for your NICs history
- Consult the GOV.UK website for guidance on NICs calculations and rates
- DON’T:
- Rely solely on online calculators or tools for accurate results
- Ignore professional advice from accountants or financial experts
- Fail to report changes in your circumstances to HMRC
How to perform a NICs check on yourself
If you still want to perform a basic NICs check, follow these steps:
- Gather necessary documents: Collect your payslips, P60 forms, and any other relevant documents.
- Calculate your NICs: Use HMRC’s online calculator or a reliable online tool to calculate your NICs contributions. Note: These tools may not provide an accurate picture of your NICs history.
- Review your online account: Log in to your online HMRC account to check your NICs history and ensure accuracy.
- Consult official resources: Review the GOV.UK website for guidance on NICs calculations and rates.
- Seek professional advice: Consult with a qualified accountant or financial expert to ensure accuracy and make informed decisions.
Tables: NICs rates and thresholds
Here are the current NICs rates and thresholds for 2022-2023:
| Type of NICs | Rate | Threshold |
|---|---|---|
| Employee’s NICs | 12% | £166.00 per week |
| Employee’s NICs | 2% | – |
| Self-Employed NICs | 9% | £9,500 per year |
Conclusion
While it’s possible to perform a basic NICs check on yourself, it’s essential to understand the limitations and potential errors that can occur. To ensure accuracy and make informed decisions, it’s recommended to use official government resources and seek professional advice. Remember to always review your payslips, P60 forms, and online account with HMRC regularly to stay on top of your NICs contributions.
