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I've successfully landed a role in the public sector. I was told by the agency it is outside IR35.

I've been sent a lot of documents to complete. Amongst them is a Ltd company compliance form. This form asks for my Nation Insurance Number number along with Ltd company details. The form states the information must be sent to HMRC.

Why would my NI number be required if the role is outside IR35? Whilst I have nothing to hide (I take salary and not dividends) I worry that taking this role will be put me on a targeted list for HMRC to harass later down the road.

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Being outside of IR35 means one is considered a (self-employed) contractor, not an employee, and as such will not have income tax and national insurance contributions deducted under PAYE.

HMRC require the NINO and Ltd Co details to cross-reference the payments declared in the public sector's accounts with the Ltd Co's accounts to ensure (a) they match, (b) the correct tax and NIC is paid by the relevant entities, and (c) to confirm the identity and/or status in the Ltd Co of the recipient of the payments.

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    Thanks for the answer. I still don't understand where my personal NI number comes into it. I am an employee of my company and I have to also pay another employee. I'm also going to take on other work along side this. Apologies this is all new to me.
    – Noobie3001
    Commented Oct 25, 2021 at 13:48
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    @Noobie3001 Image the potential for fraud if the public sector made large payments to anonymous corporations without HMRC knowing who the directors, executives or company officials were!
    – user35069
    Commented Oct 25, 2021 at 17:02

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