ISA & NI Number

book12

When opening an ISA, a NI number is needed, which I provided.

What does the bank actually do with the NI number? Do they just call DWP to see if the NI number correspond to the name of the person that opened the ISA, and say to them don't tax that person?

Aegis

A lot of your tax information is tracked through your NI number. Essentially it can be used in this case to ensure that you don't contribute to multiple ISAs in the same year.

opinions4u

book12 wrote: »

When opening an ISA, a NI number is needed, which I provided.

What does the bank actually do with the NI number?

They record it on their systems to enable them to prove that they could reasonably assume that you were entitled to open an ISA.

Do they just call DWP to see if the NI number correspond to the name of the person that opened the ISA, and say to them don't tax that person?

Nobody is picking up the phone on this one. It's an ISA. There is no need to declare it on a tax return and interest is paid without tax being deducted.

There is a requirement to provide the national insurance numbers of all those who funds ISAs within a tax year to HMRC who can (and do) identify duplicate openings and can then act to close one of the accounts, removing the tax advantages.