What Is an Employer Reference Number? How to Find Your ERN

If you employ people, you may be asked for your Employer Reference Number when arranging or renewing employers’ liability insurance.

It may also be called your ERN, employer PAYE reference or simply your PAYE reference.

It is easy to confuse this number with other business references. However, knowing what it looks like and where to find it could make your insurance paperwork much easier.

What Is an Employer Reference Number?

“ELTO has adopted the ERN as the most effective unique identifier available.”

An Employer Reference Number is issued by HM Revenue and Customs when a business registers as an employer.

HMRC usually calls it an employer PAYE reference. Within the insurance industry, it is commonly known as an Employer Reference Number, or ERN.

You normally receive it in a letter after registering as an employer. HMRC says businesses should usually register before their first payday, including limited companies where the only employee is a director.

Your Employer Reference Number identifies the PAYE scheme used to report pay and deductions for your employees.

What Does an Employer Reference Number Look Like?

An employer PAYE reference normally contains:

• A three-digit tax office number
• A forward slash
• Between one and ten letters and numbers

Employer Reference Number example

123/AB456

The forward slash is one of the easiest ways to recognise it.

HMRC advises businesses to use the term “employer PAYE reference”, although documents and forms may also describe it as a PAYE reference or Employer Reference Number.

Where Can I Find My Employer Reference Number?

Your Employer Reference Number may appear on:

• Letters from HMRC about PAYE
• Your P60 forms
• P45 forms
• P11D forms
• Many employee payslips
• Payroll reports
• Your payroll software

Your accountant, bookkeeper or payroll provider may also have it if they manage payroll for your business.

ELTO, the Employers’ Liability Tracing Office, confirms that ERNs commonly appear on P45s, P60s, P11Ds and many payslips.

Is My Employer Reference Number on My Payslip?

It may be.

Many payslips show the employer PAYE reference, although the design and information included can vary between payroll providers.

What to look for on a payslip

Look for wording such as:

• Employer PAYE reference
• PAYE reference
• Tax office reference
• ERN

The number should normally follow a format similar to 123/AB456.

Be careful not to copy your tax code, National Insurance number, payroll number or Accounts Office reference instead.

Can I Find My Employer Reference Number Online?

You may be able to find PAYE information by signing in to your HMRC business tax account or PAYE Online.

HMRC’s business tax account allows employers to view and manage taxes for which they are registered. PAYE Online can also be used to access employee notices, payment information and other payroll records.

There is not usually a public search where you can enter a company name and reveal its Employer Reference Number.

This is because it is a tax reference connected to the employer’s PAYE records, rather than a public company identifier.

Steps to take if you cannot locate it

1. Check the letter sent when the business registered as an employer.
2. Look in your payroll software or payroll reports.
3. Ask your accountant or payroll provider.
4. Check your HMRC business tax account.
5. Contact HMRC’s employer helpline.

HMRC may ask security questions before discussing confidential information about the business. Its employer helpline can generally provide only limited help where the caller cannot supply either a PAYE reference or Accounts Office reference.

Is an Employer Reference Number the Same as an Accounts Office Reference?

No. They are different numbers used for different purposes.

Your Employer Reference Number identifies your PAYE scheme. It normally looks like:

123/AB456

Your Accounts Office reference is used when making PAYE and National Insurance payments to HMRC. It is normally a 13-character reference.

The two references may appear together and often begin with the same three numbers, which makes them easy to confuse.

When your broker asks for an ERN, they usually need the reference containing the forward slash rather than your Accounts Office reference.

Does Every Employer Have an ERN?

“The ERN is the PAYE tax code given to a company as a reference number for their employees’ income tax and national insurance contributions.”

Most businesses operating PAYE will have an Employer Reference Number.

HMRC says businesses normally need to register when they start employing staff. A limited company may also need to register when the only person employed is its director.

However, a small number of employers may legitimately have no ERN because they do not operate a PAYE scheme.

ELTO uses the term “ERN exempt” for employers that genuinely do not operate PAYE and therefore have no Employer Reference Number. It should not be used simply because the business cannot find its number.

Speak to HMRC or your payroll adviser if you are unsure whether your business should be registered.

Why Does an Insurer Need Your Employer Reference Number?

Your Employer Reference Number helps connect your business with its employers’ liability insurance records.

Employers’ liability policies are recorded on the Employers’ Liability Database. This database is used to help current and former employees identify the insurer that covered an employer at the relevant time.

Business names can change. Different employers can have similar names. Companies can merge, move or stop trading.

The ERN provides a more reliable way to match an employer with the correct insurance record.

ELTO describes it as the most effective unique identifier available for employers. HMRC can also include the ERN when providing an individual with their employment history, helping them search for the relevant policy.

Do I Have to Give My ERN to My Insurer?

Your broker or insurer may ask for the number when arranging or renewing employers’ liability insurance.

When you have it, you should provide it. This helps keep the Employers’ Liability Database accurate and could make the correct policy easier to trace later.

However, the process for dealing with missing ERNs changed following an amendment to the FCA’s employers’ liability rules in December 2023.

ELTO now obtains missing ERNs on behalf of its member firms. Brokers are required to pass the number on when it is provided during the course of acting for a client, but they do not have to repeatedly pursue clients for missing ERNs.

It would therefore be misleading to suggest that an employers’ liability policy will automatically be cancelled solely because the ERN cannot immediately be found.

You should still make reasonable efforts to locate and provide the correct number when asked.

Can a Business Have More Than One Employer Reference Number?

Yes.

A larger company or group may operate several PAYE schemes. Subsidiaries may also have different ERNs from their parent company, depending on how the workforce and payroll are arranged.

Where more than one reference applies, the broker should normally be given details of all relevant employing entities and their ERNs.

If an insurance system can accept only one, ELTO says the most relevant ERN is normally the one covering the largest number of employees.

Does Having No ERN Mean I Do Not Need Employers’ Liability Insurance?

No. The two issues are related, but they are not the same.

An ERN is linked to PAYE registration.

Employers’ liability insurance is intended to cover a business against certain claims where an employee is injured or becomes ill because of their work.

UK businesses must generally arrange employers’ liability insurance as soon as they become an employer. The policy must normally provide at least £5 million of cover and be arranged with an authorised insurer. Limited exemptions apply.

Whether somebody counts as an employee for insurance purposes may depend on the true working relationship, not simply how they are described or paid.

Do not assume you are exempt from employers’ liability insurance just because you do not operate PAYE or cannot find an ERN.

Workers who may affect your insurance requirements

Speak to a broker when using:

• Part-time staff
• Temporary or seasonal workers
• Apprentices
• Volunteers
• Labour-only subcontractors
• Freelancers working under your direction
• Family members

What Should I Do If I Cannot Find My ERN?

Start with the documents closest to your payroll.

Documents and records to check

1. Your original HMRC employer registration letter.
2. Letters about PAYE.
3. Your payroll software.
4. P45, P60 and P11D records.
5. Employee payslips.
6. Your accountant or payroll provider.
7. Your HMRC business tax account.

Do not enter a Companies House number, Unique Taxpayer Reference, National Insurance number or Accounts Office reference in its place.

Tell your broker if you cannot find the number. Do not describe the business as ERN exempt unless it genuinely does not operate PAYE.

A Quick Employer Reference Number Checklist

Before arranging or renewing employers’ liability insurance:

• Find the reference containing a three-digit number and forward slash.
• Check that it is the Employer Reference Number, not the Accounts Office reference.
• Provide details for every company that employs people.
• Include all relevant ERNs where the business operates several PAYE schemes.
• Tell your broker if your legal structure or employing entities have changed.
• Ask HMRC or your payroll adviser when you are unsure whether the business should have an ERN.

Need Help With Employers’ Liability Insurance?

“It is not a trivial optional extra, it is a compulsory requirement that is designed solely to protect employees.”

Employers’ liability insurance is a legal requirement when your business employs people. It can help cover compensation and legal costs following certain employee injury or illness claims, depending on policy wording and specific business requirements.

FSB members can speak to a UK-based adviser about their workforce, business activities and the insurance options available.

Call FSB Insurance Service on 020 3883 7976.

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