National Insurance and PAYE Service

National Insurance and PAYE Service

National Insurance contributions for all UK residents and some non-residents are recorded using the NPS computer system (National Insurance and PAYE Service).
The original National Insurance Recording System (NIRS) was a more archaic system first used in 1975 without direct user access to its records. A civil servant working within the Contributions Office (NICO) would have to request paper printouts of an individual's account which could take up to two weeks to arrive. New information to be added to the account would be sent to specialised data entry operatives on paper to be input into NIRS.
NIRS/2, introduced in 1996, was a large and complex computer system which comprised several applications. These included individual applications to access or update an individual National Insurance account, to view employer's National Insurance schemes and a general work management application. There was some controversy regarding the NIRS/2 system from its inception when problems with the new system attracted widespread media coverage. Due to these computer problems, deficiency notices, which had been sent out on an annual basis prior to 1996, stopped being issued. The Inland Revenue took several years to clear the backlog.
In June 2009, HM Revenue & Customs created a new National Insurance PAYE Service (NPS) to replace both NIRS/2 and the legacy PAYE system.
From April 2010 only 30 years' contributions will be required in order to receive the maximum state pension (age retirement) instead of the previously required 44 years for men and 39 years for women. Care should be taken when receiving a deficiency notice if due to reach retirement age after April 2010. However, the previous higher age limit still applies for claiming Bereavement Benefits