Every business registered with HM Revenue and Customs (HMRC) as an employer is given an ERN. It is a unique set of letters and numbers used by the taxman to identify your business. It is made up of a three-digit HMRC office number and a reference number which is unique to you.You might have seen it referred to as an “employer PAYE reference” on tax forms. It is also on a payslip, P45 or P60 and it is usually in one of these formats: 123/Az12345 or 123/A12345
Q2: What is an Excess?
An excess is a sum of money your insurance company requires you to pay towards the cost of making a claim.
Q3: What is Index Linked?
The rebuilding cost of your building or property tends to increase over the years. Our index linked property insurance policies ensure the sum you insured is updated every year to reflect the changing cost of rebuilding in line with Association of British Insurers (ABI) Rebuilding Cost Index. For more information and how it is calculated, please visit ABI website at http://abi.bcis.co.uk/using_the_calculator/usingCalculator.aspx
Q4: What is Insurance Premium Tax (IPT)?
It is a form of tax added to any insurance premium and collected by the UK government. The IPT is currently 10%, except for Travel Insurance which is charged VAT at 20%. For more information, please visit the government website at https://www.gov.uk/insurance-premium-tax
Q5: What is employers’ liability insurance?
You must get Employers’ Liability (EL) insurance as soon as you become an employer - your policy must cover you for at least £5 million and come from an authorised insurer.
EL insurance will help you pay compensation if an employee is injured or becomes ill as a result of their work while in your employment.
You can be fined £2,500 for any day which you are without suitable insurance. You can also be fined £1,000 if you do not display your EL certificate or refuse to make it available to the government inspectors when they ask.
Q6: What is compulsory insurance?
There are two types of insurance cover that are required by law in the UK which are: