National Insurance and PAYE Service – HMRC reviews the system upgrades

Tuesday, September 29th, 2009

In the September 2009 issue of Notes for Payroll Software Developers, HMRC provides an overview of the major upgrades that have been made to its PAYE processing systems.

During July 2009, HMRC launched the National Insurance and PAYE Service (NPS), a single, national computer system which replaces the 12 regional databases that have handled PAYE processing for over 20 years. The NPS brings together what used to be the National Insurance Recording System (NIRS) and the PAYE elements of Computerisation of PAYE (COP), HMRC’s previous system. The new service processes both NICs and PAYE.

The major upgrades to IT systems were completed on schedule and 43.6 million customer records were successfully transferred to the new system. Over 28,800 HMRC staff, working in more than 650 teams across 23 business units, acquired the new service between 29 June and 20 July and it is now being used to process over 2.7 million transactions each day.

The new service provides the following benefits:

  • The new system has created one single record of each customer’s PAYE pay and tax details, making it possible to deal with the majority of enquiries at the first point of contact.
  • The PAYE Service allows most PAYE customer records to be viewed and worked by authorised staff in any location.
  • Increased automation and better processes help to deliver improved accuracy and handling of peak workloads, and reduced levels of correspondence.

Further upgrades are planned, one in November 2009 and another in April 2010. These will complete the functionality required for the new service and for the full tax cycle.

  • The November 2009 release will introduce the necessary functionality for the annual coding run in January 2010.
  • The April 2010 will introduce ‘reconciliation scans’, allowing HMRC to clear taxpayers’ records automatically as and when incomplete previous years are reviewed.

Further information:
Notes for Payroll Software Developers


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