RTI – The National Insurance Verification Request (NVR)Friday, February 24th, 2012
Over the last few weeks we have looked at three of the five submissions that employers may have to make under RTI. The first submission was the EAS (Employer Alignment Submission), designed to align the payroll system to HMRC’s master record. Then we looked at the FPS (Full Payment Submission) and the EPS (Employer Payment Summary), concluding that these would probably be the two most common RTI submissions that an employer is required to make. This week, we look at the fourth of the five submissions.
The National Insurance Number (NINO) is a vital piece of information, which uniquely identifies an employee. Therefore, every effort should be made by the employer to obtain this information from a new or existing employee. If the NINO cannot be obtained or the employer is unsure that they have been given the correct information, the NINO Verification Request (NVR) can be used. The will enable the employer to:
- Confirm the NINO they have been given is correct
- Trace a NINO
Both of these checks are dependent on the employee having supplied personal data to allow HMRC to perform the check or trace – name, address, DOB and current gender. Note that the NVR can only be generated by the employer if they have already submitted a FPS. As part of the FPS for a new starter, the NVR will be generated automatically by the payroll software if the NINO is missing.
However, some software providers have intimated that they may not build NVR functionality into their systems for the early stages of RTI and will expect employers to continue using the Trace form CA6855. Employers are advised to check with their software provider / supplier.
Note that the NVR cannot be used for an employee under 16 years of age.
After submission, and depending on the circumstances of that submission, HMRC will:
- Confirm that the NINO is correct, or
- Advise the NINO that should be used
This confirmation will be via a new HMRC message called the NINO Verification Reply (NVREP). This will be sent to the employer / bureau. The NVREP can also be generated independently by HMRC on receipt of either the EAS or the FPS. If either the EAS or FPS contains an unmatched NINO, the NVREP will be sent back containing the above information. HMRC issued ‘PAYE Update 10’ advising employers that there is no paper equivalent of the NVREP. Payroll software, therefore, must be capable of receiving the NVREP message.
HMRC advice is that an employer must never use a default or incorrect NINO. Where it is not known, the relevant field on the FPS should be left blank but two lines of the address and date of birth details must be completed.
- Payroll Help’s RTI Coverage
- Improving the Operation of Pay As You Earn (PAYE) – HMRC Impact Assessment
- Universal Credit – Welfare that Works
- Improving the Operation of Pay As You Earn (PAYE) – Collecting Real Time Information
- HMRC Press Statement 04 April 2011
- HMRC Statement 13 May 2011
- Summary of Responses 30 September 2011
- HMRC – Draft RTI Regulations (PAYE)
- HMRC – Draft RTI Regulations (NICs)
- HMRC – Draft RTI Regulations (CIS)
- HMRC – Draft PAYE Direction (Technical Note)
- NDS – HMRC Press Statement 23 November 2011
- HMRC - Employer Bulletin 39
- NDS – HMRC Press Statement 12 December 2011
- HMRC – Improving Your Payroll Data
- HMRC – Starters and Leavers Scenarios December 2011 (removed by HMRC 2012)
- HMRC – Technical Note ‘Proposal to Abolish the P45/P46 Forms’
- HMRC – Initial Guidance on RTI Items May 2011
- HMRC – Payroll Alignment January 2012
- HMRC – PAYE Update 10 – NINO Verification Response (NVREP)