Payroll case studies

NI number validation

A National Insurance (NI) number on the payroll data file provided by a leading housing association appeared on a NFI report because it did not pass a NI number validation test. The housing association checked their records and could not find a data entry error so asked Her Majesty’s Revenue and Customs (HMRC) to trace the number on their system. HMRC confirmed the NI number was valid, but said it belonged to a different person.

The employee was asked to produce documentation to prove his NI number. The housing association also asked UK Border Agency to confirm the employees right to work and right to stay in the UK. The UK Border Agency advised the housing association that it was highly likely that the evidence the employee had supplied was counterfeit. When confronted with this information, the employee refused to return to work and after taking advice from ACAS, he was dismissed.

The employee had worked for the housing association for three years and had been paid more than 60,000 during this time. He had worked in the UK for some years prior to his appointment including another leading housing association. Additionally, the recruitment agency who placed the employee was one of the leading companies in the recruitment sector.