NI Number
A unique personal reference number issued to UK residents to track their National Insurance record, in the format two letters, six digits, one letter (e.g., AB123456C). Every person in the UK who works or claims state benefits needs an NI number. Employers use it to report earnings and deductions to HMRC, ensuring your State Pension entitlement is correctly recorded.
Related Terms
National Insurance
A system of compulsory contributions paid by employees, employers, and the self-employed that funds state benefits including the State Pension, Statutory Sick Pay, and Maternity Pay.
Class 1 National Insurance
National Insurance contributions paid by employees and employers on earnings above the Primary Threshold.
PAYE
Pay As You Earn — the system by which employers deduct income tax and National Insurance directly from employees' wages before paying them, and remit the deductions to HMRC on their behalf.