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HMRC knew last September of IT problems

Errors in the HM Revenue & Customs modernised, single national computer system were known about last September, it has emerged, yet have not been fixed.

The problems have caused incorrect coding notices being sent to payroll departments in January, which will cause the wrong take-home pay for employees, and headaches for payroll managers (see ‘Incorrect notices from HMRC’, News, 26 January 2010).

At the meeting of the Employment Consultation Forum on 24 September 2009, Rhonda Howlader, co-chair of the Business Customer Unit at HM Revenue & Customs, reported ‘some defects in the live system that were not apparent during testing’.

The minutes record: ‘RH [Rhonda Howlader] gave an overview of the new National Insurance and PAYE Service (NPS). NPS is a single, national computer system which we introduced in July to replace the 12 regional databases that previously handled PAYE processing. NPS brings together what used to be the National Insurance Recording System (NIRS) and the PAYE elements of the previous system – Computerisation of PAYE (COP). The new service process both National Insurance as well as PAYE.

‘She advised the group that the major upgrades to our IT systems were completed on time and 43.6 million customer records were successfully transferred to the new system. There are over 28,800 staff, working in 650 teams, who now have NPS. Although NPS is working very well, we are seeing some defects in the live system that were not apparent during testing. We have a highly developed defects resolution process and are applying fixes and changes on a regular basis to ensure good service to our customers.’

Minutes of the meeting are available here:
www.hmrc.gov.uk/consultations/cf-minutes240909.htm

A subsequent meeting of the Payroll Consultation Meeting on 29 September reported ‘teething problems’, adding: ‘The main issues have been around coding notices, age allowances for agent authorisation and work.’

01/02/10