How to Get a National Insurance Number? What to Do and What Not to Do?

The breakdown of National Insurance payments is all about understanding what it is and how it works. Quite similar to income tax, National insurance is one of those deductions we’re mostly aware of as it impacts our pay. Insurance payments and finances are bound to get mind-boggling and keeping up with mathematical calculations can get very tiresome.

However, the business of National Insurance starts quite early on. Once you are 16 and earn a certain amount, you are bound to pay National Insurance contributions. It will facilitate building your entitlement to multiple benefits including the crucial ones like the State Pension and Maternity Allowance.

To answer all your questions and concerns, this article will tackle all the salient features and aspects of national insurance in detail. Further, information regarding legal and financial intricacies is also involved, so continue reading to enhance your knowledge about national insurance.

What is national insurance?

Primarily, national insurance is defined as a tax on earnings paid by both employees and employers who are also counted as the people who are currently self-employed. Introduced in 1911, the insurance aims to provide a fund for workers who lost their job or needed medical treatment.

Now things have drastically changed and national insurance is used to pay for the NHS, benefits, and the state pension. The government can also borrow from the National Insurance Fund to pay for other projects. Moreover, the tax payment can help to build your entitlement to benefits depending on whether you are employed or self-employed.

Determining national insurance can be somewhat tricky since a plethora of social security providers majorly depends on the people who pay national insurance aka the national insurance contributions. Factors like employment status, age, and level of income much more can have diverse effects on the level of national insurance contribution that is required to be payable.

Why pay national insurance?

Structuring the NI system dates back to the mid-1900s and the major idea behind National Insurance payments was to provide a government safety net for workers who faced financial crises. Employees paid money into the scheme out of their wages. Back in the day, the citizens who required money for medical treatment or were facing unemployment could claim from

However, now the system has been significantly altered and an abundant amount of modifications have been made. Now, the question arises what does national insurance pay for? Currently, National Insurance is used to pay for The NHS primarily. The National Health Service (NHS) is a publicly funded healthcare system. Moreover, NH also pays for unemployment benefits, sickness and disability allowances, and the state pension.

After explaining in detail what national insurance is. The next crucial question that might arise in one’s mind is why do you need to pay National Insurance? At the first glance, paying National Insurance entitles you to some state benefits. The benefit count majorly depends on your employment factors. Hence, the state benefits will be varying whether you’re employed, self-employed, or making voluntary contributions.

The duration of paying the national insurance is defined and one has to pay for a certain amount of years to be entitled to receive the state pension. In case, one hasn’t met the criteria of payment for example the minimum amount of contributions has not been paid then the individual will not be qualifying for some benefits.

Paying NI through a national insurance number

After explaining in detail what the national insurance number is. The next crucial question that might arise in one’s mind is why do you need to pay National Insurance?

Well for starters, paying National Insurance entitles you to some state benefits. The benefit count majorly depends on your employment factors. Hence, the state benefits will be varying whether you’re employed, self-employed or making voluntary contributions.

The duration of paying the national insurance is defined and one has to pay for a certain amount of years to be entitled to receive the state pension. In case, one hasn’t met the criteria of payment for example the minimum amount of contributions has not been paid then the individual will not be qualifying for some benefits.

Eligibility to apply for a national insurance number

You can apply for a National Insurance number if you live in the UK and have the right to work in the UK. You must also be looking for work or have an offer to start work in the UK. If you have already started working you can still apply. The citizens are eligible to apply under the following condition of fulfillment.

1. The citizen has lost his/her National Insurance number
2. The citizen is a UK resident aged 19 or under
3. The citizen has a biometric residence permit (BRP)(external link opens in a new window/tab) which has a National Insurance number printed on it
4. The citizen is only applying for a National Insurance number because he/she wants to apply for benefits or a student loan

How does one apply for a national insurance number?

The National Insurance Number is automatically allocated to an individual when he/she turns 16. Otherwise, the application process of the number can be initiated by following these steps.

• If you have not received your National Insurance Number and you are under the age of 20, call the National Insurance number helpline (0300 200 3500).
• If you are older than 20, call the National Insurance application line on 0800 141 2075.

Moreover, the office is only open Monday to Friday. The only document required is that you must have your ID. For issuance, an interview might as well be conducted for official protocols.

Apply for a national insurance number online

You have a National Insurance number to make sure your National Insurance contributions and tax are recorded against your name only. It’s made up of letters and numbers and never changes. You can find your National Insurance number:

1. on your payslip
2. on your P60
3. on letters about your tax, pension, or benefits
4. in the National Insurance section of your personal tax account

You can apply for a National Insurance number if you do not have one or find your National Insurance number if you’ve lost it. These organizations need to know what your number is

1. HM Revenue and Customs (HMRC)
2. your employer

To prevent identity fraud, keep your National Insurance number safe. Do not share it with anyone who does not need it. You can save or print a letter confirming your National Insurance number from your personal tax account. If you do not have a personal tax account, contact HMRC to ask for a letter, they will be issuing the major verdict.

What is my national insurance number?

National Insurance numbers are set by the Department of Work and Pensions. Every number that is assigned to the contributors is unique. The NIN usage is primarily for identification purposes so that the government keeps track of how much tax has been paid.

Furthermore, It also keeps a thorough and detailed check regarding how much state pension one might owe or facilitates tracking of the tax allowance.

Delving into details about the assignment process, every person is only assigned one National Insurance number and the same number is utilized throughout the person’s lifespan.

As for the format of the National Insurance number, it mainly comprises three categories namely two letters, six numbers and a final letter.

The following national insurance number will determine how much is national insurance you are required to pay to achieve the state pensions.

How does one apply for a national insurance number?

The National Insurance Number is automatically allocated to an individual when he/she turns 16. Otherwise, the application process of the number can be initiated by following these steps.

• If you have not received your National Insurance Number and you are under the age of 20, call the National Insurance number helpline (0300 200 3500).
• If you are older than 20, call the National Insurance application line on 0800 141 2075.

Moreover, the office is only open Monday to Friday. The only document required is that you must have your ID. For issuance, an interview might as well be conducted for official protocols.

How can I find my national insurance number online?

Normally, the National Insurance (NI) number will be sent to the citizens just prior to their 16th birthday. However, in case you have lost your NI number, it’s not the end of the world. Thankfully, there are several ways to find it again and in fact, you can also dig in online whilst searching for your national insurance number.

Ever since the pandemic, the world has successfully moved toward the online tech world and takes refuge in completing tedious tasks in the comfort of their home. So, how can I find my national insurance number online? Firstly, the person who has lost his national insurance number can check the number using his/her online Personal tax account or on the HMRC App. Initially, when you log into a website, a series of questions will be asked to confirm your identity that I am indeed the person or a scammer or hacker.

In case you fail to answer the questions correctly, you will be directed to try again. In the best-case scenario, you will be directed in and then you can view, share or print a copy of your NI number confirmation letter. Moreover, there is a possibility to look back through old records whilst you pursue the search for your missing national insurance number. You’ll find your NI number on many documents you’ll have received from your employer or HMRC. Check old payslips, P60s, or any letters about tax, pensions, and benefits.

It can also be requested by post after completing an online form on the HMRC site. There’s also an HMRC phone line that can send your number by post if you would rather do that – see the National Insurance Number Helpline for more. However, one is advised to be mindful of such alert companies that promise to provide your national insurance number online in return for a fee. It is pertinent to mention that getting your national insurance number is free and it is issued by HMRC.

What benefits does national insurance contributions (NIC) pay for?

Below are the benefits which depend on national insurance contributions NIC:

1. Maternity Allowance
2. Contribution-based/New Style Jobseeker’s Allowance (JSA)
3. Contribution-based/New Style Employment and Support Allowance (ESA)
4. Bereavement Benefits
5. Basic State Pension
6. New State Pension

Here, we list down a plethora that does not depend on national insurance contributions NIC:

1. Attendance Allowance
2. Disability Living Allowance (DLA)
3. Personal Independence Payment (PIP)
4. Child Benefit
5. Guardian’s Allowance
6. Universal Credit

Lost national insurance number

Needless to say, losing a national insurance number can get worrisome unarguably. Thankfully, there are a plethora of ways to find it on official documents. Documents like payslips from a job, your tax return, or a PAYE coding notice will have these documents. Furthermore, it is also possible to ask HMRC to confirm it by the following procedures as mentioned below:

1. completing form CA5403 ‘Your National Insurance Number’ and sending it to HMRC; or
2. contacting the National Insurance numbers helpline if you are in England, Scotland or Wales, or the National Insurance Registration helpline if you are in Northern Ireland.

Whichever method you use, HMRC will write to you and confirm the NINO. They will not provide the NINO over the telephone. If you need a letter confirming your NINO, you can print a letter from your Personal Tax Account. You can read about Personal Tax Accounts and how to get one in our tax basics section.

The following people may need to know your National Insurance number (NINO):

1. HMRC Employers and pension providers
2. DWP and Local council
3. The Student Loans Company
4. Banks and building societies.

Do not give your NINO to anyone who does not need to know it. If you suspect that someone has stolen your NINO and is committing identity fraud or theft, you should contact HMRC and tell them what you think has happened. The website getsafeonline.org also provides guidance on how to protect yourself from identity fraud.

Low-earners and national insurance

The people who do not earn enough and lie below a certain salary threshold, are not obliged to pay National Insurance. A glimpse into the statistics for the years 2021-22, the limit was £9,568 for employed workers; in 2020-21 it was £9,500.

However, it is advisory to consider making voluntary Class 3 contributions since extensive gaps in an individual’s record may deprive him/her of several benefits in the longer run.

Married woman – National insurance contributions

Now, how much is national insurance for a married woman? Back in 1977, married women were allowed to make National Insurance contributions at a reduced rate. The following course of action made them stop building up entitlement to the state pension. This way they relied on their husband’s National Insurance contributions record.

The following dependence was termed as the ‘married woman’s stamp’. Majorly, the female who opted for the above-mentioned option could continue to make reduced National Insurance contributions.

In the other case, they could pay at the full rate and gradually build up individual pension entitlement. With reduced contributions, their maximum entitlement is currently 60% of the basic state pension.

However, things have changed now. Women in such positions who have yet to reach state pension age are no longer eligible since 2016. The pension entitlement is currently depending on the number of qualifying years’ national insurance contributions they have made in their own right.

National insurance credits

Further, we discuss the terminology ‘National Insurance credits’ and how the following work on a larger scale. National Insurance credits are an easy way of maintaining your National Insurance record when you are not making National Insurance contributions. The aforementioned credits will help facilitate the individual to build up ‘qualifying years’. The following qualifying years will be counted towards your entitlement.

Entitlement to national insurance credits

After the birds-eye view of National Insurance credits, we now dive into the intricacies and working of these credits. The general notion explains that the people who are qualified and meet the criteria of the credits are not making the contributions because they are not in paid employment.

The reason behind discounted employment can be listed as personal and professional reasons both. The possible reasons include maternity/paternity leaves, prolonged illness, unemployment, or other private reasons.

Moreover, citizens are also eligible and can receive National Insurance credits when they are on an approved training course or busy performing jury service. National Insurance credits are divided into two categories. The two types are discussed in detail below.

• Class 1 covers State Pension and bereavement benefits along with other benefits like Jobseeker’s Allowance or Employment Support Allowance.
• Class 3 credits only count towards your State Pension and bereavement benefits

Increase in national insurance

Inflation has emerged as a new war forefront after battling the coronavirus. The National insurance contributions will rise from April 2022. The increase has been made to fund a health and social care levy. Everyone including the employees, employers, the self-employed, and pensioners will be hit by higher tax bills. Earlier, the pensioners were not required to pay national insurance after reaching the state pension age.

However, according to the new rules, everyone will have to pay the new levy on their earnings if they are still working from April 2023.

Advantages of national insurance number

The national insurance number will facilitate NI contrition which has a plethora of benefits. Below are the benefits which depend on national insurance contributions NIC:

1. Maternity Allowance
2. Contribution-based/New Style Jobseeker’s Allowance (JSA)
3. Contribution-based/New Style Employment and Support Allowance (ESA)
4. Bereavement Benefits
5. Basic State Pension
6. New State Pension

Proof of national insurance number

Providing evidence and proof of national insurance numbers can be somewhat confusing as notifying its presence can get hectic for many people. However, showcasing the proof of national insurance number is surprisingly easy and one ought to follow the following steps.

1. Required documents include P45 or P60 and a letter from HM Revenue and Customs about tax or tax credit
2. The detailed bank statements show payments by direct debit for class-2 National Insurance contributions. Further, benefit payments received showing your NINo on the statement are also required. Examples are Incapacity Benefit or State Pension.
3. Payslips, salary statement or works pension statement (as long as it shows your NINo).
4. The letter that the Pension Service or Jobcentre Plus has sent to you (not handwritten).
5. NINo card (not handwritten).

The following example is not a full list; rather, they require one document to confirm the National Insurance number and one to confirm your partner/spouse’s National Insurance number if you have been married.

Finding your lost national insurance number

In case you are yet to get familiar with the complicated language of insurance numbers, the quickest and easiest way to find it is online through your personal tax account or you can also put it on any official document like a payslip or P60.

The HM Revenue and Customs (HMRC) will not tell you your National Insurance number over the phone. If you call them, it can take up to 15 days to get a letter with your National Insurance number. Despite following the official protocol, there are instances when you are still unable to find the national insurance number.

In that case, you can fill in form CA5403 and send it to the address on the form. Further, you can contact the National Insurance numbers helpline and answer some questions. It is pertinent to mention that HMRC no longer sends out National Insurance cards.

Conclusion

In conclusion, the national insurance number makes sure that the National Insurance contributions and taxes you pay are properly recorded on your account. It also acts as a reference number for the whole social security system. The following healthcare policy does cater to citizens’ ease and adjustability. The contribution of headstart can be easily termed the driving force that will in the future provide state benefits. The series of National Insurance contributions and credits can be easily sorted and dealt with to avoid further complications.