National Insurance Number
addition to the ‘maxima’ shown in the table, an additional 1% must be added on the sum of: • the total earnings between the Earnings Threshold (ET) and the Upper Earnings Limit (UEL) from each employment, less • the difference between the weekly Earnings Threshold (ET) threshold and the weekly Upper Earnings Limit (UEL) × 53 HMRC has the responsibility for refunding ‘excess’ contributions. FromApril 2009 the introduction of the Upper Accrual Point (UAP) changed the calculation to account for the fact that standard rate NICs is paid between the UAP and UEL in contracted-out employment. From April 2011 the percentage above the UEL increased to 2%. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS NATIONAL INSURANCE NUMBER The Department for Work and Pensions (DWP) issue a National Insurance Number (NINO) for each potential contributor to the National Insurance Fund. HMRC’s National Insurance Contributions and Employer Office notifies individuals of their NINO. Numbers are notified by the DWP to all individuals on attaining the age of 16 years and to adults and contributors who have not previously been allocated a NINO (e.g. newly arrived foreign nationals). The prime purpose of the NINO is to identify and record contributions whether deducted from pay by employers, or paid directly by an individual (usually when self-employed). The numbers must be submitted on annual tax and contribution returns (P14s), and should be used in all correspondence with HMRC. Being unique to each individual, the NINO is often used by employers and various bodies for identification purposes, principally HMRC, Department for Work and Pensions and employers. It forms a prime record in the prevention of the employment of illegal immigrants. It is therefore important that the NINO recorded against an employee’s payroll record is accurate and available as soon as possible to enable matching for Real Time Information. Under RTI a NINO verification Request (NVR) will check the format and ‘ownership’ of NINOs for all employees when they are first aligned and for new starters submitted on the FPS. HMRC will notify employers electronically if NINOs should be amended or do not ‘belong’ to the employee concerned. Employers may also have functionality in their software to generate ad-hoc NVRs to check legacy records. From 6th April 2017 HMRC will be using an updated NVR process which will apply to the FPS, and EAS. Applying for a NINO through Jobcentre Plus This process applies to: • adults who were not issued with a number automatically at aged 15 plus, and • children who have not been part of a Child Benefit claim as otherwise they automatically get a NINO allocated at aged 15, plus • people coming in to the UK from abroad • In order to get a NINO, the applicant must be either: • working, about to start work or actively seeking employment, or • making a claim to benefit, or • be entitled to and wish to pay voluntary Class 3 NICs • be referred by the student loan company No printing, copying or reproduction permitted.
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