Introducing PAYE improvements

This summer will see the introduction of a new PAYE system that will allow us to significantly improve the service we currently provide.

The new automated system will transform the way we do business and is a key part of HMRC’s plans to create a more professional and efficient Department. It will enable
us to deliver a faster, more efficient service for individuals and reduce some of the burden placed on employers.

One record

Currently, personal tax records are held over 12 regional databases. The new system will bring together all this information, creating one single record of an individual’s pay and tax details, however many jobs or pensions they may have. This will enable us to view and amend an individual’s record no matter where they are employed in the UK and, as a result, deal with enquiries at the first point of contact and manage peaks and troughs in demand more effectively.

The new PAYE service will reduce the number of times that we have to contact either employers or their employees for more information. We will be able to deal with employees’ enquiries quicker and in one place because we will have all their details to hand.

We plan to deliver these improvements this summer and will continue to keep you updated through the HMRC Internet site as plans develop.

Temporary service interruption

To introduce the new PAYE system, we will need to transfer our data to the new service. This will mean that some elements of the service may be temporarily interrupted. The vast majority of PAYE customers will have no reason to contact us during this period of interruption and will not be affected. However, some will be inconvenienced and we are doing everything we can to minimise this.

We will provide details of our services at the time on this website, however, employers should continue to send us forms, returns and correspondence as usual.

Online submissions will be validated as normal. Data that fails the online validation checks will be rejected and returned to employers as now. Good quality data will be retained and held until it can be processed on the new PAYE service. Where employers send data on paper, this will also be held until it can be captured on the new service.

During the transition to the new service, the assistance that we will be able to provide to employers in respect of individual employees will be limited. Our staff will not be able to update individual PAYE records. Therefore, it would be helpful , and save employers’ time, if employers or their agents wait until the new PAYE service is fully up and running before they contact us.

We will keep you informed of progress via this website.

The vast majority of employees will not be affected by delays to processing during this period.

Customer contact

Throughout this period HMRC’s helplines, both for employers and individuals, will be open. We will continue to provide support to our customers through our Contact and Enquiry Centres. However, during this period our customers may experience a temporary interruption to the normal level of service that we provide and, unless their contact is urgent, they should consider postponing their enquiry. Our telephone enquiry lines will carry appropriate messages during this period to reflect this.

Getting the numbers right

To prepare for the move to the new system, we are crosschecking the National Insurance numbers held on our systems to make sure all information held is correct. Where we find that the wrong National Insurance number is being used, we will send employers a form P46-5T telling them what the right number is. We will also write to the individual concerned. Employers should update their records and use the new National Insurance number as soon as they can.