New PAYE Service launched

During July we successfully launched the new PAYE Service. This is a single, national computer system which has replaced the 12 regional databases that handled PAYE processing for over 20 years. The major upgrades to our IT systems were completed on time and 43.6 million customer records were successfully transferred to the new system. Over 28,800 of our staff, working in 650 teams, now have the new Service and we are currently processing over 2.7 million transactions each day.

The introduction of the PAYE Service is the biggest change ever to the way that we administer PAYE since it was introduced. The new system will help us deliver a faster, more efficient service to you and your employees and improve our internal PAYE processes.

This is the first of three upgrades. The remaining two will be in November 2009 and April 2010 and complete the functionality for the new Service and for the full tax cycle.

What are the benefits?

  • The new system has created one single record of a customer’s PAYE pay and tax details to enable us to deal with the majority of enquiries at the first point of contact and manage the demand for our services more effectively.
  • The PAYE Service allows most PAYE customer records to be viewed and worked by authorised staff in any location.
  • It will mean improved accuracy through increased automation and better processes and the ability to manage work nationally without any geographic constraints. This will help us to better handle peaks in our workload.
  • The PAYE Service will significantly reduce the volume of correspondence issued to you as PAYE will be applied more accurately at the first point of contact.
  • It will ensure that we can deliver a better customer service, which is at the very heart of our Departmental Vision, whilst at the same time supporting the efficiency savings that we must make.

National Insurance and PAYE Service

The PAYE Service is supported by an IT system called the National Insurance and PAYE Service (NPS). This brings together what used to be the National Insurance Recording System (NIRS) and the PAYE elements of our previous system - Computerisation of PAYE (COP). This new service processes both National Insurance as well as PAYE. Over time we will update our customer literature to reflect the new name.