Department reveals plans to recruit an external supplier to oversee operation and upgrades for its suite of digital services to support the smallest businesses in operating payrolls and paying tax
HM Revenue and Customs is planning to appoint an external supplier to take on responsibility for ongoing development and support of the department’s own software tool for supporting very small businesses in fulfilling their tax obligations.
The department developed, runs, and owns the intellectual property for the Basic PAYE Tool (BPT) suite of digital services, which are designed to help firms with fewer than 10 employees in administering income and tax and National Insurance.
The software, which can be used in either English or Welsh, “provides the ability for small employers to create their own Employer Database to support and streamline many of the basic day-to-day requirements” of operating a payroll system and calculating their tax requirements, according to a newly published contract notice.
The document adds that BPT enables SMEs “to operate their payroll digitally and submit their payroll information to HMRC” for various required submissions.
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The department has issued a request for information outlining that, going forward, HMRC is “seeking a supplier to build, run and maintain” the Basic PAYE Tool – as well as the Paper Capture Tool (PCT). The latter is a “software product that provides the ability for HMRC operators to capture information from paper submissions, plus supports the operators ability to submit… employer paper submissions” related to payments, formal summaries, and updates specific to the Construction Industry Scheme, through which HMRC automatically collects payments related to subcontractors.
The supplier that is ultimately appointed to the BTP and PCT is advised by HMRC that “we hold the intellectual property which would be made available to the appointed supplier” in order to fulfil the contract.
The RFI notice says: “As we retain the intellectual property, we expect the selected supplier to potentially rebuild and/or modernise the tool throughout the duration of the contract… [and] update the application annually.”
The document adds: “BPT is an end-to-end payroll system, compatible with current supported desktop operating systems, which is provided by HMRC to employers (with nine… or fewer employees) to ensure legal compliance and enables businesses to accurately calculate, record and report PAYE tax, National Insurance, student and postgraduate loans, statutory payments, and employer records, correct digital submission mistakes, produce payslips and much more.”
Tech firms interested in delivering this contract have until 8 November to take part in the engagement process by emailing HMRC. The department then expects to issue a contract notice early in January. The potential length and value of the deal has not been specified at this stage.