Yes, an employee can be paid without a National Insurance (NI) number. However, there are some important considerations and steps to follow in this situation.
When you hire a new employee who doesn't have an NI number, you can still process their payroll and pay them. The lack of an NI number should not prevent or delay payment for work performed. Here's what you need to know:
Temporary Process
If an employee doesn't have an NI number, you should be aware of these important steps:
Onfolk will take care of reporting the lack of NI number to HMRC through the Full Payment Submission (FPS). The information disclosed includes the employee's name, address, date of birth, and gender, which helps HMRC match the employee's records once they receive their NI number.
You'll need to inform your employee that they need to apply for an NI number as soon as possible. They can do this by calling the National Insurance number application line or applying online.
Follow up with them if you haven't heard back from them as they will need to update their NI number in Onfolk so we can submit the correct information to HMRC.
Once the NI Number is Received
It's crucial that the NI number is updated in Onfolk as soon as the employee receives it. When the employee receives their NI number:
Update the employee profile immediately with the new NI number.
Onfolk will use the correct NI number in all future communications with HMRC.
There's no need to correct earlier submissions
Important Notes
Tax and National Insurance contributions still apply: Even without an NI number, Onfolk will still calculate and deduct the correct amount of tax and National Insurance contributions from the employee's pay.
Right to work: Remember that an NI number is not proof of the right to work in the UK. You must still carry out the necessary right to work checks before employing someone.
Time limit: While there's no strict time limit for obtaining an NI number, it's in everyone's best interest to acquire and update it as soon as possible to ensure accurate record-keeping and avoid any potential issues with HMRC.