HMRC seeks up to £500 million to overhaul National Insurance and PAYE platform
HM Revenue & Customs has launched a procurement process worth as much as £500 million to replace its ageing National Insurance and PAYE system with a more agile architecture.
HM Revenue & Customs is inviting firms to compete for a contract valued at up to £500 million, including tax, to modernise the National Insurance and PAYE System (NPS). The legacy platform, described as lacking modularity and scalability, will be replaced with a service-oriented, agile architecture capable of handling real-time processing and future policy changes. The procurement could span seven years, covering strategic milestones, key business events and legislative updates.
A supplier market-engagement event is scheduled for next month, with a formal tender expected in September and work slated to begin in June 2027. This follows a January-last-year award of £35.2 million to Accenture for additional NPS support without competition, highlighting the system’s critical role in collecting roughly 40 percent of UK tax revenue.
Why it matters
Modernising the core tax-collection system will affect how quickly and accurately UK taxpayers' contributions are processed.
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