It is understandably concerning for any business when they learn that an employee’s wages have been processed under an incorrect NI number. Of course, the scenario is even more worrying for the affected staff member, given the implications for their personal taxation.
Unfortunately, it is a situation that Dataplan has encountered on occasion, with erroneous NI numbers being supplied and misallocation of individual wage deductions ensuing as a result. Income tax, National Insurance and student loan repayments can all end up placed alongside an incorrect employment record.
If this happens, then Dataplan correcting the National Insurance number in our payroll software should automatically action the required NI reallocations at HMRC’s end. In respect of income tax and student loan, by contrast, the affected employee should contact HMRC’s Taxes Helpline on 03002003300, with their employer’s PAYE scheme and accounts office references handy. The employee needs to explain that their payroll data has been processed on an incorrect NI number, specifying the letters/digits that were used and those which should have been applied instead.
They should then request a reallocation of the relevant deductions, to which the advisor should be able to assist with ‘cleansing’ the records and reallocating the appropriate deductions alongside the correct NI number. In the case of Student Loan deductions, the employee should go on to ask the advisor to arrange for contact with the Student Loan Company, to ensure that the necessary action is taken at their end.
At Dataplan, we know that dealing with HMRC can sometimes be daunting, but we stand ready to help in any way possible.
