Why do employees need a National Insurance number?
Every resident of the United Kingdom (UK) automatically receives a National Insurance number (NINO) when they turn 16 years old. For employees living outside of the UK at that time, they can register to receive a National Insurance number if they plan to work in the UK.
An NINO is used to ensure that your National Insurance contributions and tax are recorded against your name only.
National insurance numbers are distributed by the Department of Work and Pensions (DWP).
A NINO is issued by made up of 2 letters, 6 numbers and a final letter, for example, AB 12 34 56 C. A temporary NI number will start with the letters 'TN'.
What if my employee doesn't have a NI number yet?
You can run payroll even if an employee doesn't have a NINO yet. This won't block your payroll, but you should ensure that your employee has applied for a NINO.
What if my employee has a temporary NI Number?
If an employee has not yet been issued a national insurance number, HMRC will issue a temporary national insurance number. However, this can't be used on your submissions to HMRC, and it can't be entered into your payroll software.
If an employee provides you with a temporary NI number, simply leave their national insurance number blank in PayFit until HMRC issues the employee's full national insurance number.
The missing national insurance number won't delay or cause an issue with your full payment submission.
Add or edit an employee's National Insurance number
To add or edit an employee's national insurance number:
From the employee's record, click the Employment tab.
Under the Employment Information section, click Edit.
Add or edit the National Insurance number, then click Save.