Employers' Liability Tracing Office (ELTO) – action required
Following the new FCA regulatory requirements introduced in 2012, we need more information from you for the Employers Liability (EL) database to ensure claimants can trace insurers in event of an
Employer’s Liability claim.
To comply with ELTO rules, and avoid possible regulatory sanctions, we need the following information;
• The Employer Reference Number (ERN) or whether the policy is ERN exempt
• Any Subsidiary company information.
Capturing this information is for the benefit of employees as well as meeting FCA regulatory requirements and we’re keen to get to the stage where collection of this information is second nature for everyone involved. Ultimately, we’re unable to accomplish these goals without the vital role you play in this process
Hints and Tips for getting the correct ERN• ERN’s will normally begin with three numbers (representing the tax office whose catchment area the employer falls into) followed by a forward slash and then a combination of letters and numbers, for example, 083/WY12345.
• The ERN can be found on the relevant HMRC Employer Booklet or other documents about to Income Tax such as a P45, P60, P11/D and most payslips.
• Care should be taken to obtain the Employer Reference Number and not the PAYE Accounts Office Reference Number; both numbers look very similar and can be easily confused.
• An ERN should be no longer than 12 characters.
How do you provide the ELTO information?• You’ll need to provide your underwriter with the ELTO information as part of all new business, MTAs and renewals (where it was not previously captured or where circumstances have changed)
• If the business is on Fast Trade, you should enter the ELTO information directly on the trading platform. If you’ve issued the new policy or renewal without including the ERN, you should amend this following this process.
• Alternatively, if you hold a Bordereaux Scheme, you need to submit the ELTO information as per your agreed process. Due to the information usually being supplied one month in arrears it makes it even more critical that it’s right first time.
ELTO Exempt statusThere are only a minority of employers who are ELTO exempt such as:
• Employers paying each of their employees below the current PAYE threshold (currently £182 per week / £787.00 per month / £9,440 per year)
• Employers registered in the Channel Islands or the Isle of Man
Don’t forget if your client is ELTO exempt, we still need to know this.
Please can you share this communication with all relevant people within your office.
If anyone has any queries please contact underwriter, underwriting manager or your business development manager. For Bordereaux Schemes please contact Ian Varney on 07800 691563 or firstname.lastname@example.org
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