HMRC has recently announced new procedure by which individuals can email them for the confirmation of National Insurance number. This can be done using form CA5403. In their press release HMRC has advised that, those who have lost or unable to remember their National Insurance number or even can’t get it on the documents, can directly email to HMRC for the written confirmation of the same. You can also make use of these services to inform them about change in name or address, if any.
They have also made it cleared that National Insurance cards will not be issued now and National Insurance number will not be considered as the identity proof. What is this National Insurance and how to check the National Insurance number? Let’s try to understand in detail.
National Insurance which is shortly known as NI is tax system in United Kingdom. It is paid by employees as well as employers to contribute in state benefits. It was introduced in 1911 by the National Insurance Act and government expanded it in 1948. Numerous amendments were added in following years. At the initial level, it was in the contributory form against unemployment and sickness and finally delivered pensions after retirement and many other benefits. The National insurance is paid by the citizens to be eligible for State Pension along with other benefits. Employees and their employers pay for National Insurance contributions and certain benefits are provided to employees. The self-employed people contribute partially through fixed weekly or monthly payment and partially as the percentage on the net profits they have gained. These contributions are collected by HMRC through a system called PAYE along with income tax, instalments of student loans and any other amount which an employee is accountable to pay.
There are certain conditions for paying the National Insurance. You can pay it if your age is 16 years or more, if you are an employee and earn more than 155 Euro a week or if you are self-employed and gain yearly profit of 5965 Euro or more.
Before you start contributing towards National Insurance, you need to have National Insurance Number. There are different types of National Insurance which are called as classes. The class of the insurance you have to pay depends on the status of your employment and the amount of money earn. It also depends on whether or not you have gaps in National Insurance record. For example, if you are an employee of the University, then you have to pay class 1 insurance. These employees will only stop paying the insurance when they will reach the age of State Pension.
The National Insurance number is given to you to check if the National Insurance contributions you are making and the tax amount you are paying is correctly recorded against your name only. This number is formed with the combinations of letters and numbers and will never change.
This number can be found on payslip, P60 and tax return. If you don’t have the national Insurance number, then you can find an accountant who will let you know about the procedure in detail.
There are certain organizations that need to know your National Insurance Number for specific purposes. They are as follows:
It is directed not to share your National Insurance number with anyone who need not to know it and prevent identity fraud by keeping it safe.
If you seek for National Insurance number, Jobcentre Plus will write you and call you for an interview. They will ask you about your situation and reason for seeking the National Insurance number. The letter will mention the documents necessary to carry for proving your identity. The documents required for this purpose are, passport or identity card, birth certificate or adoption certificate, marriage certificate or civil partnership certificate, resident permit, driving license, etc. You can seek the help of any of the local accountants if you have queries regarding the process.
As mentioned earlier, if you lose your National Insurance number or don’t remember it then, you can get it by filling up form CA5403 and emailing it to HMRC. You can take help of accounting services for filling up the form.