When Opening an ISA, why do they need your NI number?

love2learn

When opening an ISA, why is there a requirement to give your national insurance number? Is this so that the government can leep track of how much money you have, so that they can reduce your state pension accordingly?

Aegis

I think it's so that they can see how much you've put into an ISA previously. This can then ensure that you're operating under the maximum allowed tax-free amount per year.

I think...

Cazza

I would also guess it's got something to do with the fact you don't need to pay tax on the interest and you're only allowed to have one at a time - NI number is probably the easiest way to make sure no one abuses the system!

LittleVoice

love2learn wrote: »

Is this so that the government can leep track of how much money you have, so that they can reduce your state pension accordingly?

State pension doesn't have anything to do with your savings AFAIK.

ic

love2learn wrote: »

Is this so that the government can leep track of how much money you have, so that they can reduce your state pension accordingly?

If this were true, you'd have to hand it over for all types of accounts, not just ISAs!

Cook_County

Its specially thought out to increase the possibility of identity fraud since the financial institution now has even more data on you than it needs...:rotfl:

dealornodeal_3

Its easier for Big Brother watching you:eek: :mad:

vnice

they may or may not report your isa to dwp but they could in theory if there were proper channels put to do that.

it would be interesting to know whether they do or not?

the only person who could answer that would be a professional,accountant bank or it person,anyone like that here?:A

paulmcfadyen

As suggested previously, it's so the DWP can make sure you do not open more ISAs than the rules allow. I know someone who did this, and received a letter instucting him to close one of his accounts.

Hereward

paulmcfadyen wrote: »

As suggested previously, it's so the DWP can make sure you do not open more ISAs than the rules allow. I know someone who did this, and received a letter instucting him to close one of his accounts.

Actually your NI number is the only way that HMRC can identify you for tax purposes. I discovered this yesterday, as I had a query in regards to my tax code ans they only way theu could identify me was by using my NI number.

isofa

Inland Revenue requires all ISA accounts that are opened for individuals to record the National Insurance Number - which is your unique ID throughout life - as they are tax efficient accounts which are actually regulated by IR.

Anyone offer an ISA product must comply with the rules of the Reporting of Savings Income Information Regulations 2003 - and these require your NI number.

More info on NI numbers at:
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015904