National Insurance and PAYE Service (NPS)
HMRC have issued information on the latest update to the new National Insurance and PAYE Service (NPS) system which was introduced earlier this year. The new system is designed to ensure that there will be only one PAYE and national insurance record per employee.
The latest upgrade, which was launched on 23 November 2009, will allow HMRC to complete the annual tax coding run in January 2010 using NPS for the first time. The update also enables HMRC to identify incomplete national insurance and PAYE records.
A further upgrade to the system, planned for April 2010, will deal with under and over payments of tax. In addition, the system will automatically update taxpayers records when previous ‘open’ years are finalised.