In a move that has left many UK employers scrambling for alternatives, HM Revenue & Customs (HMRC) has formally withdrawn its National Insurance Number (NINO) Verification Request (NVR) service. Announced quietly in an update to the PAYE55030 guidance on June 27, 2025, the service ceased operations on February 3, 2025, with no clear timeline for reinstatement. This development, first highlighted by payroll experts at PAYadvice.UK, underscores ongoing challenges in payroll compliance amid Real Time Information (RTI) submissions.
A Brief History of the NVR Service
Launched in April 2012 alongside the rollout of RTI, the NVR was designed to streamline the verification process for new hires. Employers using RTI could submit requests for up to 100 employees at a time to either confirm an existing NINO or obtain one if it was unknown. This was particularly useful for onboarding, where discrepancies in employee details could lead to payroll errors or compliance issues.
To use the service, employers provided key employee designatory details via compatible payroll software or HMRC's free tools, including:
- Surname or family name
- Forename or given name
- Initials
- Second forename (if applicable)
- Date of birth
- Current gender
- Address
Submissions required an initial Full Payment Submission (FPS) and could be filed through the EDI Channel or Internet Channel. HMRC would then respond—either validating the NINO, flagging an incorrect one for correction, or supplying a valid NINO if none existed. Importantly, the service was never mandatory; it was recommended only for genuine new employees where verification was essential.
The Shutdown: What's Behind It?
Reports of the NVR "going dark" surfaced earlier this year, with employers noting ignored requests and a lack of responses from HMRC. The official withdrawal, detailed in the PAYE55030 manual, cites a routine review as the catalyst, but speculation abounds. Other sources suggests potential factors like curbing fraudulent misuse—such as rogue actors submitting bogus requests—or broader cost-saving measures within HMRC.
As of now, the service remains offline indefinitely. HMRC has not indicated a restart date, leaving employers to adapt without this once-reliable tool. The timing, just months into 2025, has amplified frustrations, especially for small businesses reliant on quick NINO confirmations.
NINOs: Vital for Benefits, But Not for Employment
At its core, a NINO tracks National Insurance Contributions (NICs), which are crucial for assessing eligibility for benefits, pensions, and tax credits. However, misconceptions persist about its role in the workplace. HMRC emphasises that a NINO is not compulsory to start or maintain employment in the UK. Common pitfalls include:
- Using placeholder numbers like AA111111A or AB123466C from guidance examples.
- Fabricating NINOs, which HMRC explicitly prohibits.
If an employee's NINO is unknown, the simplest solution is to leave the field blank on RTI submissions. Payroll systems or insistent employers may flag this as an error, but HMRC guidance is clear: blanks are acceptable and will not trigger penalties.
What is mandatory? Rigorous Right to Work checks. Employers must verify an individual's legal eligibility to work in the UK—via documents like passports, visas, or biometric residence permits—regardless of NINO status. Failure here can result in fines up to £20,000 per worker or even criminal prosecution.
Navigating the Post-NVR Landscape
Without NVR, employers should pivot to these best practices:
- Request NINOs Directly: Ask new hires to provide their NINO on application forms or during onboarding. Most individuals already have one from prior employment, school-leaving age, or DWP/HMRC allocation.
- Manual Verification: For uncertainties, contact HMRC's Employer Helpline (0300 200 3200) or use the online NINO application service for those without one.
- Software Updates: Ensure payroll providers have patched systems to handle blank NINO fields without errors.
- Documentation: Maintain thorough records of Right to Work checks and any NINO correspondence to demonstrate due diligence.
HMRC's review may eventually lead to a revamped service, but for now, the focus shifts to accuracy and compliance without shortcuts.
Looking Ahead
The NVR withdrawal highlights the evolving demands of UK payroll in a digital-first era. While it removes a convenience, it reinforces that robust processes—centred on legal checks over administrative hurdles—remain the gold standard. Employers are urged to review their RTI workflows promptly to avoid disruptions.
