National Insurance Number Holders: HM Revenue & Customs (HMRC), the UK’s tax department, recently issued an important warning to all citizens holding National Insurance (NI) numbers. The department states that the National Insurance number is a highly confidential and lifelong identity, so it should only be shared when necessary. If misused, it could lead to problems such as identity fraud and illegal bank transactions.
Why is the National Insurance Number Important?
The National Insurance Number is a permanent code for each individual, consisting of two letters, six digits, and a final letter. It ensures that your tax and National Insurance contributions are recorded only in your name. According to HMRC, an individual’s NI number is usually sent to them by official letter before their 16th birthday. This number is also recorded on their payslip, P60, or other tax-related documents.
Under what circumstances is it safe to share?
HMRC has clarified that you should only share your NI number with authorised organisations and in necessary circumstances. These include:
Your employer
The Department for Work and Pensions (DWP), such as Jobcentre Plus or the Pension Service
Local council or Northern Ireland Housing Executive, when you claim Housing Benefit
Electoral Registration Officer, when verifying your identity to vote
Student Loan Company, if you apply for a loan
Pension Provider, if you have a personal or stakeholder pension
Authorised financial service providers, such as ISA (Individual Savings Account) providers or investment services institutions
Veterans UK, if you fall into this category
Risks and security measures
Experts say that illegally sharing a National Insurance number increases a person’s risk of identity theft and financial fraud. In this situation, fraudsters could open bank accounts or withdraw money in your name. HMRC recommends that you keep your NI number safe in the HMRC app or on official documents and never share it with unknown individuals or suspicious organizations.
Your National Insurance number is directly linked to your identity and financial security. This message from HMRC is not just a warning, but a security guideline. Remember, think carefully before sharing your National Insurance number and only share it with authorized institutions.