A National Insurance number plays a key role in the lives of citizens and residents of the UK. Despite many of us being aware of what a National Insurance number is, some remain confused.
So, what is a National Insurance number, and why is it important? Continue reading to learn more about National Insurance numbers and their significance.
What is National Insurance?
National Insurance (NI) is a required tax on earnings that helps pay for benefits, unemployment, and retirement pensions in the UK.
This specific tax was first introduced in 1911 to protect the working people. To contribute NI, you’ll need an NI number. With an NI number, your contributions and tax will be successfully recorded throughout your life, meaning you can qualify for a pension and certain other benefits, including Jobseeker’s Allowance, and Maternity Allowance.
When Are You Given a National Insurance Number?
You are first given an NI number a few months before turning 16 by the Department for Work and Pensions (DWP).
If you meet certain criteria, you’ll receive your NI number automatically. If you don’t receive a number automatically, it’s likely the criteria haven’t been met. To receive your NI number automatically, you must:
- Reside in the UK
- Have your address on record
- Have a parent or guardian who has claimed child benefits for you
If you fail to meet the criteria, you must apply online. The process of applying for an NI number is relatively simple, as long as you have proof of your identification and right to live and work in the UK.
National Insurance Number Example
An NI number is a unique sequence consisting of two letters, six numbers, and a final letter at the end – also known as an alphanumeric code.
For example, an NI number could look something like this – QQ 22 33 44 D.
NI numbers will always end in either A, B, C, or D. Throughout your life, your NI number won’t change, meaning you’ll have the same code for the entirety of your working life.
Why Are National Insurance Numbers Important?
Your NI number is important for several reasons, providing many benefits to those living in the UK:
- Tracks tax payments in your name
- Allows for benefits and pension entitlement
- Helps employers deduct contributions from their staff
- Serves as an identifier for social security in the UK
- Used by public services to verify who you are (including healthcare services and educational institutions)
Without an NI number, you may face employment difficulties and struggle to gain key benefits, such as a State Pension.
Who Pays National Insurance?
Three categories of people generally pay for NI in the UK:
- Employers
- Employees
- Self-employed individuals
As discussed, if you’re over 16 and have an NI number, you’ll start paying mandatory NI if:
- You’re an employee earning more than £242 per week from one single job
- You’re self-employed earning a profit of £12,570 per year
However, you don’t usually pay NI (but may still be eligible for certain benefits) if you’re:
- You’re an employee earning £123 to £242 per week from one single job
- You’re self-employed earning £6,725 or more per year
Voluntary payments are often paid to avoid gaps in your NI contributions. They’re seen as having been paid to protect your overall record, which means you’ll likely qualify for the usual benefits offered. You can learn more about NI rates and categories here.
Where to Find Your National Insurance Number
There’ll be times in your life when your NI number is required – but where do you find it? There are a few places where you will find your NI number:
- P60
- Payslips
- Letters discussing benefits
- Your personal tax account
- Within the HMRC app
If for any reason you’re unable to use these methods to find your NI number, you can find it online through the HMRC website. To use the online service to find your NI number, you’ll be required to provide proof of identity, using either a passport or photo ID.
Protecting Your National Insurance Number
Your NI number is a sensitive piece of information that must be kept secure. To protect your NI number, we suggest:
- Only providing it to trusted entities (such as an employer or government agency)
- Avoiding sharing it on public platforms or with other individuals
- Storing letters or documents with it in secure and safe places
If you lose important documents containing key information about yourself, including your NI number, report promptly to the relevant authorities. It’s also vital to be wary of fraudulent websites seeking to exploit your NI number.
Keeping Your National Insurance Number Updated
Although you don’t need to update your NI number, HMRC does require you to inform them when your personal details change. Certain changes may require you to update or check your NI details, and you should review your information if:
- You change your name
- You change your address
- You get married
- You get divorced
- You experience a change in your employment status
- If your NI card is lost or damaged
Understanding the significance of your NI number and taking appropriate steps to protect and update your information ensures a secure experience throughout all stages of your life – whether it be entering the workforce, accessing public services, or planning for retirement.
Do You Require Assistance Dealing With Tax?
It’s important to keep on top of your tax payments, especially your NI contributions. Paying your NI contributions is relatively straightforward, and can be done during your self-assessment tax return.
However, we understand that many individuals, especially those working as self-employed, will struggle to manage their taxes independently.
At LJS Accounting Services, we have one aim – to make dealing with tax as simple as possible. Our trusted accountants can help make NI contributions easier to understand while assisting with the preparation of your tax returns.
To learn more about our tailored tax services, please contact a member of our team today. We look forward to hearing from you.

Keli Evans, Director at LJS Accounting Services, excels in taxation and statutory accounts. With a focus on strong client relationships, she leads a diverse portfolio, overseeing vital financial aspects like VAT, payroll, pensions, and taxation with a holistic and committed approach.