PAYE system improvements
HMRC is making significant changes to the way in which it holds and processes PAYE records. Commencing this summer, HMRC will introduce a new PAYE software system which will merge PAYE data currently held on 12 separate regional databases.
The new system is designed to ensure that there will be only one PAYE record per employee no matter how many jobs, pensions and regions they are involved with. Whilst data is being transferred to the new system it will not be possible for HMRC to update individual PAYE records. However employers’ online submissions and paper forms will continue to be accepted and should be submitted as before. These submissions will be held until they can be processed on the new software system.
The work on the new system started on 12 June and it is expected that taxpayers may be affected throughout the summer months as various elements of the PAYE systems are moved to the new platform. These changes will also affect access to the National Insurance system.
The work is most likely to affect taxpayers who need information which specifically relates to recent PAYE changes or national insurance records.