What Happens if an Employee Does Not Have a National Insurance Number?

Yes, you can legally process payroll for employees without a National Insurance (NI) number — but there are specific compliance and payroll reporting steps to follow.

✅ Payroll Can Still Be Processed

Employees can be added to payroll and paid even if they don’t yet have an NI number. However, the employee must apply for an NI number as soon as possible.

📋 Documentation You Must Keep

When onboarding an employee without an NI number, ensure you retain:

• Full legal name and residential address

• Date of birth and gender

• Passport or right to work documentation

• Any supporting ID the employee used during onboarding

🧾 HMRC Reporting Without an NI Number

We will submit the Full Payment Submission (FPS) to HMRC using all other identifying information. When the NI number becomes available, we will update the employee’s record and HMRC will retrospectively apply NI contributions accordingly.

💷 National Insurance Contributions

• NI deductions are still made based on the employee’s earnings

• These will be properly attributed once HMRC matches the NI number to their record

💼 Pension Scheme Considerations

Some pension providers may require an NI number to calculate contributions accurately. Without one:

• The employee’s contributions may default to a higher rate (typically 5% instead of 4%)

• This can be corrected once the NI number is provided

🚨 Important Compliance Reminder

Do not use a made-up or placeholder NI number (e.g., "AB123456C"). HMRC no longer accepts temporary NI numbers, and doing so may compromise the employee’s tax and pension records.

📝 Action Required

• Instruct the employee to apply for an NI number immediately: Apply for a National Insurance Number – GOV.UK

• Once they receive it, send it to us via the secure portal or your usual contact method

• We will update their payroll profile accordingly

If you need assistance or have further questions, please contact us here.