PAYE26020 - employer records: magnetic media: magnetic media - pay / pension number updates

An arrangement is available for changes to employee or pensioner identity numbers (also known as works numbers) to be updated electronically. This arrangement would be useful to employers and offices

• After a payroll reorganisation
• As a housekeeping exercise where an employer reports that notices of coding contain out of date pay or pension numbers

Booklet MT3

A technical specification MT3 is available for employers wishing to report new or amended pay / pension numbers using magnetic media. Refer the employer to the HMRC website, to obtain a copy of the technical specification ‘electronic business – Updating of Pay / Pension Identity Numbers (MT3)’. The specification provides details of the requirement for reporting this information to the Data Centre on magnetic media.

Note: Employers can send works numbers updates on Open Reel Tapes (ORT) until October 2004, however the ORT specification given in the MT3 version January 2001 must be followed. If an employer wishes to obtain a copy of the January 2001 specification ask them to contact the Online Services Helpdesk.

After October 2004 HMRC will not support ORT and employers should consider other online filing options.

General Arrangements

On receipt of any query regarding this arrangement the Processing Office will act as normal point of contact

• Refer the employer to the HMRC website, to obtain a copy of the technical specification ‘electronic business – Updating of Pay / Pension Identity Numbers (MT3)
• Inform the employer to submit their application and tape to their Data Centre (the one they remit their tax and NIC to)

The Data Centre

• Uses the employees' NINO on the magnetic tape as the tracing key
• Attempts to match the records on the magnetic tape against our database

And, where a match is made

• Enters the new works number on the record

Where the Data Centre is unable to make a match, they will forward lists of mismatched cases to the employer and advise them of the reason. These may include

• Incorrect or temporary NINOs included on the magnetic tape
• NINOs relating to employees who are not liable to deductions under PAYE

Copies of exception lists are not forwarded to the Processing Office.

Time Limits

No specific time limit applies to employers who wish to use this facility. However, where an update is required for use for the next Annual Coding run in February the Data Centre should receive the details no later than 31 December.