National Insurance number

Last updated

The National Insurance number is a number used in the United Kingdom in the administration of the National Insurance or social security system. It is also used for some purposes in the UK tax system.

Contents

The number is sometimes referred to with the abbreviations NI, No or NINO. [1]

Allocation of number

Three months before a person's 16th birthday, HM Revenue and Customs (HMRC) notifies them of their NI number. [2]

In 1993, a one-off mass allocation of NI numbers was made to all children under the age of 16 whose parents were in receipt of Child Benefit. As a result of this, siblings who met the criteria above were allocated NI numbers sequentially. [3]

People from abroad who wish to work in the UK, or those to whom a number was not initially allocated as children, must apply for a number through the Department for Work and Pensions (DWP). [4]

Format

The format of the number is two prefix letters, six digits and one suffix letter. [5] An example given at the source is QQ123456C, although that is an invalid entry according to the definition.

Neither of the first two letters can be D, F, I, Q, U or V. The second letter also cannot be O. The prefixes BG, GB, NK, KN, TN, NT and ZZ are not allocated. [6] Validation lists of issued two-letter prefixes are published from time to time. [7] [8]

After the two prefix letters, the six digits are issued sequentially from 00 00 00 to 99 99 99. Since 2009, the last two digits determine the day of the week on which various social security benefits are payable and when unemployed claimants need to attend their Jobcentre to sign on (renew their claims): 00 to 19 for Monday, 20 to 39 for Tuesday, 40 to 59 for Wednesday, 60 to 79 for Thursday and 80 to 99 for Friday. [9] [10]

The suffix letter is either A, B, C, or D. [5] [lower-alpha 1] The NI number is unique without the suffix letter,[ citation needed ] so, for example, if AB 12 34 56 C exists, then there will be no other numbers beginning with AB 12 34 56 (although temporary numbers were not necessarily unique, because two people with the same date of birth would have had the same number). In official electronic submissions, the final letter may be represented by a space if not known. [11]

The Northern Ireland National Insurance scheme is funded and administered separately from the scheme in Great Britain but operates identically so that, in practice, the same rules apply throughout the United Kingdom.

History

Until 1975, the suffixes A, B, C and D at the end of the NI number signified the period of validity of the National Insurance cards originally used to collect National Insurance contributions (NICs). Cards were exchanged every twelve months, and because of the very large numbers of cards issued, the exchange was staggered.

Suffix A cards ran from March of one year until March of the next year, when they were exchanged for a new one. Suffix B suffix cards ran from June until the following June, suffix C from September until the following September and suffix D from December until the following December. For example, a B stagger card issued in 1955 might have run from the first Monday in June that year until the first Sunday in June the following year.

This staggered system operated from 5 July 1948 until 1975, at which time the A stagger cards were extended to run an extra five weeks, until 5 April 1975, in line with the end of the tax year. The B, C and D stagger NI Cards had a shorter period of validity in their final year and ran from June, September and December respectively in 1974 until 6 April 1975. From 6 April 1975 onwards, a computerised National Insurance Recording System (NIRS) was used to allocate all NICs by tax years.

In Great Britain, expired NI cards were sorted into one hundred separate groups corresponding to the final two numbers of the NI number and were posted to the individual insured person's NI account (the RF1) by the corresponding one hundred ledger sections at the Records Branch of the Central Office of the Ministry of National Insurance and its successors. [lower-alpha 2]

These sections dealt not only with the recording of NI contributions but with requests for information about qualifying contributions necessary to pay sickness, unemployment, widows, and other benefits and also with any correspondence arising from those NI accounts and NI cards. Within each of the sections, NI numbers were allocated among 16 splits, with one clerk administering each split. To trace unknown NI numbers, a general index contained millions of small RF2 index slips, filed in order of surname and listing the name(s), date of birth, and NI number for every person within the National Insurance scheme.

Temporary numbers

Until April 2001, employers sometimes allocated their employees a temporary insurance number, which followed the format "TNdd mm yy x", where 'TN' stands for temporary number and is static and x is M for male, F for female, or P for pensioner and the numbers in the midsection were the employee's date of birth. [6] In the case of a woman born on 31 December 1958, for example, the temporary NI number would have been TN 31 12 58 F. Temporary NI numbers could not be used to trace back any NI credits or personal details. Since 2001 the National Insurance number must be obtained – the temporary code must not now be used. [12]

Another type of temporary NI number is the Revenue-issued Temporary Reference Number (TRN) used when HMRC is unable to trace a taxpayer's original NI number. It follows the format 63T12345.

Administrative numbers

Reference numbers similar in format to NI numbers are sometimes allocated for tax or benefit purposes with special prefix letters. Special prefixes used now or in the past include the letters OO (for Tax Credit claims), CR (for investigations), FY (formerly for Attendance Allowance claims, named after the Fylde social security office where claims were processed), MW (used from 1980 to 1987 for migrant workers), NC (formerly for Stakeholder Pensions), PP (for use by pension schemes as PP999999P), and PY or PZ (both used for tax-only accounts created prior to 2003). [5]

Numbercards

Prior to 1984, when a person was allocated an NI number, a manila notification card was issued to them. From 1984 until 2011, they received a plastic 'numbercard', of similar proportions to a credit card, with the number raised on the front. The card was only used as a reminder of the number; it was not needed to start work, and was not considered a valid identity card. Numbercards were phased out after September 2010 and their issue ceased in October 2011. NI numbers are now notified by letter. [13]

Crown dependencies

National Insurance numbers issued in the Isle of Man hold the prefix MA. [14] Similarly, those issued in Jersey start with JY, and those issued in Guernsey hold the prefix GY. Only Channel Island NINOs issued prior to 1975 are validated, and recognised for UK use by HMRC. [15]

Use for tax purposes

The National Insurance number is used as a reference number in the Pay As You Earn system, and also by the self-employed. It is also used in applications for Individual Savings Accounts (ISAs), to check that an individual has opened only one ISA in a tax year.

However, the NI number is not used universally as a tax identification number. Taxpayers who need to file a tax return are given a different number, a Unique Taxpayer Reference (UTR), which is used as a reference number in the self-assessment tax system. [16]

Use for identification

NI numbers are sometimes used for identification purposes in other contexts which have nothing to do with their original National Insurance purpose – such as forming part of evidence of right to work in the UK, [17] or as the account number with a credit union. The NI card, however, is not proof of identity.

See also

Notes

  1. ↑ (F, M, and P have been used for temporary numbers in the past)
  2. ↑ the Ministry of Pensions and National Insurance (1953), the Department of Health and Social Security (1968), Department of Social Security (1988); from 1999, the Contributions Agency became part of Inland Revenue, later HMRC

Related Research Articles

An individual savings account is a class of retail investment arrangement available to residents of the United Kingdom. First introduced in 1999, the accounts have favourable tax status. Payments into the account are made from after-tax income, then the account is exempt from income tax and capital gains tax on the investment returns, and no tax is payable on money withdrawn from the scheme.

<span class="mw-page-title-main">National Insurance</span> Tax and social benefit system in the UK, introduced in 1911

National Insurance (NI) is a fundamental component of the welfare state in the United Kingdom. It acts as a form of social security, since payment of NI contributions establishes entitlement to certain state benefits for workers and their families.

<span class="mw-page-title-main">Inland Revenue</span> Defunct department of the British Government responsible for the collection of direct taxation

The Inland Revenue was, until April 2005, a department of the British Government responsible for the collection of direct taxation, including income tax, national insurance contributions, capital gains tax, inheritance tax, corporation tax, petroleum revenue tax and stamp duty. More recently, the Inland Revenue also administered the Tax Credits schemes, whereby monies, such as Working Tax Credit (WTC) and Child Tax Credit (CTC), are paid by the Government into a recipient's bank account or as part of their wages. The Inland Revenue was also responsible for the payment of child benefit.

<span class="mw-page-title-main">Social insurance number</span> 9-digit number issued to Canadian residents

A social insurance number (SIN) (French: numéro d'assurance sociale (NAS)) is a number issued in Canada to administer various government programs. The SIN was created in 1964 to serve as a client account number in the administration of the Canada Pension Plan and Canada's varied employment insurance programs. In 1967, Revenue Canada (now the Canada Revenue Agency) started using the SIN for tax reporting purposes. SINs are issued by Employment and Social Development Canada (previously Human Resources Development Canada).

<span class="mw-page-title-main">HM Revenue and Customs</span> Non-ministerial department of the UK Government

His Majesty's Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers. HMRC was formed by the merger of the Inland Revenue and HM Customs and Excise, which took effect on 18 April 2005. The department's logo is the Tudor Crown enclosed within a circle.

In the United Kingdom, and formerly in the Republic of Ireland, a P45 is the reference code of a document titled Details of employee leaving work. The term is used in British and Irish slang as a metonym for termination of employment. The equivalent slang term in the United States is "pink slip".

<span class="mw-page-title-main">Taxation in the United Kingdom</span> United Kingdom tax codes

In the United Kingdom, taxation may involve payments to at least three different levels of government: central government, devolved governments and local government. Central government revenues come primarily from income tax, National Insurance contributions, value added tax, corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds, business rates in England, Council Tax and increasingly from fees and charges such as those for on-street parking. In the fiscal year 2014–15, total government revenue was forecast to be £648 billion, or 37.7 per cent of GDP, with net taxes and National Insurance contributions standing at £606 billion.

A national identification number, national identity number, or national insurance number or JMBG/EMBG is used by the governments of many countries as a means of tracking their citizens, permanent residents, and temporary residents for the purposes of work, taxation, government benefits, health care, and other governmentally-related functions.

<span class="mw-page-title-main">Stamp duty in the United Kingdom</span> Tax charged on legal instruments

Stamp duty in the United Kingdom is a form of tax charged on legal instruments, and historically required a physical stamp to be attached to or impressed upon the document in question. The more modern versions of the tax no longer require a physical stamp.

<span class="mw-page-title-main">Personal Public Service Number</span> ID number for individuals in Ireland

The Personal Public Service Number is a unique identifier of individuals in Ireland. It is issued by the Client Identity Services section of the Department of Social Protection, on behalf of Ireland's Minister for Social Protection.

A service number or roll number is an identification code used to identify a person within a large group. Service numbers are most often associated with the military; however, they also may be used in civilian organizations. National identification numbers may be seen as types of service numbers.

IR35 is the United Kingdom's anti-avoidance tax legislation, the intermediaries legislation contained in Chapter 8 of Income Tax Act 2003. The legislation is designed to tax 'disguised' employment at a rate similar to employment. In this context, "disguised employees" means workers who receive payments from a client via an intermediary, i.e. their own limited company, and whose relationship with their client is such that had they been paid directly they would be employees of the client.

In the UK, every person paid under the PAYE scheme is allocated a tax code by HM Revenue and Customs. This is usually in the form of a number followed by a letter suffix, though other 'non-standard' codes are also used. This code describes to employers how much tax to deduct from an employee. The code is normally based provided to HMRC by the taxpayer or their employer.

An umbrella company is a company that employs agency contractors who work on temporary contract assignments, usually through a recruitment agency in the United Kingdom. Recruitment agencies prefer to issue contracts to a limited company to reduce their own liability. It issues invoices to the recruitment agency and, when payment of the invoice is made, will typically pay the contractor through PAYE with the added benefit of offsetting some of the income through claiming expenses such as travel, meals, and accommodation.

Vehicle registration plates of Kosovo are issued by the Ministry of Internal Affairs of the Republic of Kosovo. As of June 1, 2012, all residents of Kosovo are obliged to fit their cars with KS or RKS plates. Non-compliance results in confiscation of the non-Kosovar plates and legal charges.

<span class="mw-page-title-main">Income in the United Kingdom</span>

Median household disposable income in the UK was £29,400 in the financial year ending (FYE) 2019, up 1.4% (£400) compared with growth over recent years; median income grew by an average of 0.7% per year between FYE 2017 and FYE 2019, compared with 2.8% between FYE 2013 and FYE 2017.

Small Self Administered Scheme (SSAS) is a type of UK Occupational Pension Scheme.

<span class="mw-page-title-main">Social Security number</span> Nine-digit number issued to U.S. citizens and permanent residents

In the United States, a Social Security number (SSN) is a nine-digit number issued to U.S. citizens, permanent residents, and temporary (working) residents under section 205(c)(2) of the Social Security Act, codified as 42 U.S.C. § 405(c)(2). The number is issued to an individual by the Social Security Administration, an independent agency of the United States government. Although the original purpose for the number was for the Social Security Administration to track individuals, the Social Security number has become a de facto national identification number for taxation and other purposes.

<span class="mw-page-title-main">Revenue stamps of the United Kingdom</span>

Revenue stamps of the United Kingdom refer to the various revenue or fiscal stamps, whether adhesive, directly embossed or otherwise, which were issued by and used in the Kingdom of England, the Kingdom of Great Britain, the United Kingdom of Great Britain and Ireland and the United Kingdom of Great Britain and Northern Ireland, from the late 17th century to the present day.

Pension Led Funding (PLF) is a financial services product offered in the United Kingdom (UK) that raises funds for businesses based upon the use of pension benefits accrued by owners or directors of the business they control. The money can then be used for the provision of a secured commercial loan, the purchase of commercial property, *the purchase of intellectual property assets, or the purchase of share capital.

References

  1. ↑ for example, by HM Revenue & Customs in National Insurance Manual NIM39100 Archived 11 November 2012 at the Wayback Machine
  2. ↑ "NIM39305 - National Insurance Numbers (NINOs): Registration of a new NINO: Juvenile Registration: the automatic process". HMRC Manuals. Retrieved 18 March 2016.
  3. ↑ "National Insurance Numbers (NINOs): Format and Security: What a NINO looks like". Gov.UK. Government of the U.K. Retrieved 16 February 2019.
  4. ↑ "HM Revenue & Customs: Applying for a National Insurance Number" . Retrieved 26 February 2011.
  5. 1 2 3 "NIM39110 - National Insurance Numbers (NINOs): Format and Security: What a NINO looks like". HM Revenue and Customs. Retrieved 10 March 2015.
  6. 1 2 "National Insurance Number Freedom of Information request" (PDF). DWP Central Freedom of Information Team. 11 October 2013. Retrieved 10 March 2015.
  7. ↑ Message Implementation Guidelines for PAYE NINO Verification Request, 30 September 2011 Archived 2 January 2022 at the Wayback Machine , Appendix B: Valid National Insurance Number Prefixes (p. 46)
  8. ↑ List of valid National Insurance number prefixes Archived 2 January 2022 at the Wayback Machine , HM Revenue & Customs: Avoiding and correcting errors in your Employer Annual Return
  9. ↑ "Decision Makers' Guide: Chapter 08 - Payment of benefit/Deductions from benefit" (PDF). Department for Work and Pensions. July 2011. Retrieved 29 September 2011.
  10. ↑ Example regulations: "The Social Security (Claims and Payments) Amendment Regulations 2009". The Stationery Office. 9 March 2009. Retrieved 29 September 2011.
  11. ↑ "National Insurance Number". Cabinetoffice.gov.uk. 2 October 2009. Archived from the original on 24 July 2012.
  12. ↑ "HM Revenue and Customs: Taking on a new employee". Hmrc.gov.uk. 6 April 2010. Retrieved 21 May 2010.
  13. ↑ "HMRC website: Final phase to replace NI numbercards". Archived from the original on 27 October 2011. Retrieved 18 October 2011.
  14. ↑ "NIM39620: Isle of Man Cases". Hmrc.gov.uk. Retrieved 21 May 2010.
  15. ↑ "NIM39115: NINO prefixes". Hmrc.gov.uk. 6 April 1975. Archived from the original on 25 April 2017. Retrieved 21 May 2010.
  16. ↑ "HMRC: How to get a Self Assessment tax return". Archived from the original on 6 April 2011. Retrieved 15 April 2011.
  17. ↑ "Full Guide for Employers on Preventing Illegal Working in the UK" (PDF). UK Border Agency. Retrieved 28 August 2012.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.