When you’re submitting your data, you must include your employees’ NI numbers.
If you don’t have an employee’s NI number then under HM Revenue & Customs (HMRC) rules, we won’t be able to claim tax relief from HMRC for them if you’re deducting contributions from their pay after tax is taken.
When the employee gives you their NI number, you’re also required by law to provide us with this information within six weeks.
Deducting contributions after tax (net tax basis)
If you don’t provide your employees’ NI numbers, we won’t be able claim tax relief for these employees from HMRC. This could also result in your employees’ pension contributions being less than the minimum legal requirement. Under the automatic enrolment rules, employers have a duty to ensure minimum contributions are paid. For example, if one of your workers is making the (current) minimum contribution of 1% of qualifying earnings and they’re entitled to tax relief, you’d deduct 0.8% contribution from their pay and send it to us. We’d then claim 0.2% from HMRC as tax relief on the employee’s behalf. The total employee contribution would be 1%.
Important – if you don’t have the employee’s NI number, you have a duty to ensure that minimum contributions are being paid. So, to comply with the rules, you’ll need to update your payroll system/files to deduct and send us the entire 1% employee contribution (instead of 0.8%).
Deducting contributions before tax? (gross tax basis)
If any NI numbers are missing for your employees, and your account is set up on the gross tax basis, this will not affect the tax relief that they automatically get on their pension contributions. However, it’s still important that you provide all employees’ NI numbers, as you’re still required by law to provide this information to us within six weeks of you receiving it. Not only that, we also use NI numbers to ensure each of your employees can be traced in future so that they can access their savings.
There may be one exception where your employees won’t have NI numbers, but are still entitled to tax relief. This would happen if you’re employing a citizen of a country outside the UK who isn’t resident in the UK. If this applies to you, either you or your employee will need to provide a statement to us giving reasons why that employee doesn’t hold an NI number. Your employees will need to notify us in writing within 30 days if their circumstances change after we’ve received this statement.
What happens if my employees can’t find their NI numbers?
If an employee doesn’t know if they have a NI number or has lost their NI number, they can find more information about how to trace this on www.gov.uk/lost-national-insurance-number. They can also use this link to apply for an NI number.
How do I add my employees’ NI numbers?
We’ll highlight employees with missing details with . Click ‘Select’ beside the employee’s name and add their NI number. For a step-by-step guide on how to identify those employees with missing NI numbers and add these details, click here.
If you’re using The People Pension to assess your staff, we’d calculate your pension contributions on the assumption that you’ve provided NI numbers for each of your employees. If you don’t include this information, your employees’ contributions won’t get topped up with tax relief from HMRC – this could mean that their contributions could be less than the minimum legal requirement. You’ll need to update your payroll system/files to deduct and send us the entire 1% employee contribution (instead of 0.8%) for any employees without NI numbers.
You can email us at email@example.com if you need help.