public sector

Taxman wants to drag creaky NPS into agile era

The UK government is inviting suppliers to bid to build a new national insurance system with a price tag of up to £500 million. The tax collector, HM Revenue & Customs (HMRC), has issued a call to speak to suppliers about the procurement to continue to run and then update the National Insurance and PAYE System (NPS). The “change” aspect of the new contract, which could last up to seven years, is to support “strategic milestones, key business events, and legislative or business-driven updates,” an official notice says.

The Preliminary market engagement notice states: “NPS currently operates on a legacy technology estate with limited modularity and scalability. HMRC's future ambition is to transition towards a more agile, service-oriented architecture that supports strategic goals for Income Tax and National Insurance Contributions (NICs) administration, including increased real-time processing capability.”

HMRC says the investment — the potential contract is earmarked at £500 million including tax — would lay the “groundwork for future innovation by ensuring HMRC has access to adaptable and resilient support services that can respond effectively to evolving policy, customer needs, and technology opportunities.”