{"id":286,"date":"2025-10-29T12:00:05","date_gmt":"2025-10-29T12:00:05","guid":{"rendered":"http:\/\/policybee.co.uk\/blog\/?p=286"},"modified":"2025-10-29T11:59:49","modified_gmt":"2025-10-29T11:59:49","slug":"whats-an-employer-reference-number","status":"publish","type":"post","link":"https:\/\/www.policybee.co.uk\/blog\/whats-an-employer-reference-number","title":{"rendered":"What’s an Employer Reference Number?"},"content":{"rendered":"\n

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Don’t know what an Employer Reference Number is? Not sure why you need one? Can’t remember if you have one?<\/p>\n\n\n\n

No problem. Here’s why your Employer Reference Number (ERN) is important; to you, to your insurer, and to your insurance.<\/p>\n\n\n\n

(Warning: acronyms ahead. Lots of them.)<\/p>\n\n\n\n

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What’s an ERN & what does it look like?<\/h2>\n\n\n\n

Every business registered with HM Revenue and Customs (HMRC) as an employer is given an ERN. It\u2019s a unique set of letters and numbers used by the taxman to identify your business. It\u2019s made up of a three-digit HMRC office number and a reference number unique to you.<\/p>\n\n\n\n

You might\u2019ve seen it referred to as an ’employer PAYE reference’ on tax forms. It’s also on a pay slip, P45, or P60, and it’s usually in one of these formats:<\/p>\n\n\n\n

123\/Az12345<\/p>\n\n\n\n

123\/A12345<\/p>\n\n\n\n

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What\u2019s an Employer Reference Number used for?<\/h2>\n\n\n\n

It’s mainly for end-of-year PAYE returns<\/a>. Missing or invalid ERNs are the most common reasons for HMRC rejecting end-of-year returns.<\/p>\n\n\n\n

Employees might ask you for your ERN \u2013 they\u2019ll need it if they\u2019re applying for things like tax credits. You might also have to include it on their pay slips, if you don\u2019t already.<\/p>\n\n\n\n

And, if you\u2019ve recently bought or renewed an employer\u2019s liability insurance<\/a> (EL) policy with us, you might find your insurer wants to know your ERN too.<\/p>\n\n\n\n

Following new legislation introduced in 2012, it became the insurer’s responsibility to collect ERNs at the same time as setting customers up with EL cover. Things have changed since, and the Employers\u2019 Liability Tracing Office<\/a> (ELTO) now works alongside HMRC and the Financial Conduct Authority (FCA) to capture ER numbers directly.

That means many insurers no longer ask for your ERN when you buy EL. Although some are still to make the switch fully. The good news being that it’s one less job for you.<\/p>\n\n\n\n

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Why does your ERN have to be declared?<\/h2>\n\n\n\n

In the event of an EL claim it\u2019s necessary to identify \u2013 quickly and efficiently \u2013 all the companies where the employee in question has worked. EL insurance claims can occur years after the alleged event (in cases of exposure to harmful substances, for example) and trawling through mountains of paperwork to find the relevant insurer is both time-consuming and problematic.<\/p>\n\n\n\n

ERNs streamline this process and make life a whole lot easier for both claimants and insurers alike.<\/p>\n\n\n\n

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Who doesn’t need an Employer Reference Number?<\/h2>\n\n\n\n

As with all these things, there are exemptions and some businesses don’t need an ERN.<\/p>\n\n\n\n

They are:<\/p>\n\n\n\n