Supplying Your Insurance Broker With Your Employer Reference Number (ERN)

Your Employer Reference Number (ERN) is a unique combination of letters and numbers provided by the tax authority to uniquely identify employers within the UK. If you have staff whose earnings surpass the PAYE threshold, you will possess an ERN, which is crucial to relay to your insurance provider.

Is an ERN necessary?

If you do not employ anyone or if all your staff earn below the PAYE limit, an ERN is not required. Additionally, if your business operates outside of the UK (England, Wales, Scotland, or Northern Ireland), you will not need one. Conversely, if you do employ individuals earning above the PAYE threshold and are based in the UK, an ERN is essential, though you might already have one if you are registered as an employer with HMRC.

How can you locate your ERN?

Often called an ‘Employer PAYE reference’, this number can be found on payslips, tax documents, and forms such as a P45 or P60, typically formatted as: 123/A12345. If you are unable to locate it, or are uncertain about your employer registration status, contacting HMRC can help clarify your situation.

Why is knowing your ERN important?

Your ERN is crucial for obtaining Employers Liability insurance, as you are legally obligated to provide it. Lack of an ERN could lead to insurance policy cancellation, leaving you unprotected and potentially violating legal regulations.

Insurers rely on your ERN to verify employment details should a claim arise against your organisation’s Employers Liability. Additionally, your ERN is necessary for processes like tax credits, student loans, and P45 applications, and not having it could complicate your year-end tax submissions. It is important to ensure both your broker and insurer have your ERN to prevent any issues.

If you require any help with obtaining a new Employers Liability insurance policy, or a renewal quote, please do get in touch via our Contact page and we would be happy to help.