PAYE103003 - Individual records: maintain individual details: redundant and pseudo NINO records
Redundant NINO record
During the transition from NIRS1 to NIRS2 there were a number of national insurance number (NINO) records that were designated as ’redundant’. There are 21 reason types of redundant record, but the vast majority relate to individuals who are either deceased or not liable for national insurance contributions.
These records will be inactive for national insurance (NI) purposes, but it is possible that the individual may be in receipt of, or become entitled to, an occupational pension (for example on their partners death) and therefore liable to tax.
NI operators will receive a warning box on entry to a redundant NINO record that identifies the redundancy type; PAYE Service operators will not receive a message.
For PAYE, the NPS record will only be identifiable as a redundant record as it will appear incomplete, that is certain information archived from the record when designated as redundant is incomplete, this may include there being no address, forenames reduced to initials and surnames shortened.
Notes:
1. For NPS / PAYE purposes, redundant records contain the same functionality and can be updated and worked as normal. If you identify a redundant record that has a live PAYE source you should update the personal details. See ‘Pseudo NINO records’ below for exceptions.
2. Due to employers historically using a generic 01/01/1901 date of birth on forms P14, there are instances of incorrect postings to redundant records.
If you identify a redundant record with a live employment, you should review the record and postings to ensure that they relate to the record / individual. Delete the employment if you establish that the form(s) P14 has been incorrectly posted to the record. Unfortunately, due to restricted P14 functionality on redundant records you cannot remove the P14.
Pseudo NINO records
A pseudo record is a redirection record set up for NI purposes. These records have been set up to redirect NI postings where it was identified that an employer or employee was using an incorrect NINO. Any posting to a pseudo record is redirected to the correct NINO record.
When an NI operator accesses a pseudo record they are shown a warning box on entry and are redirected to the correct NINO. PAYE Service operators will not receive a message.
For the PAYE operator it may be difficult to distinguish between a live record, redundant NINO and a pseudo record on NPS. There may be limited personal details and employments may have been manually created in error. One clear indication is that it will not have any forms P14 on the record.
Pseudo records should not be updated. Although the PAYE Service will allow you to create employments and update personal details the forms P14 for the individual will not post to a pseudo record and will instead be directed to and held on the correct record.
You are only likely to come across a pseudo record where the employee / employer has incorrectly quoted the wrong NINO, that is the pseudo NINO, when contacting HMRC. If you think that the record you have entered is a pseudo NINO, due to limited information and no forms P14 held, or where you trace an NINO record that appears to be a pseudo record, you should refer the case to NICO Accounts Investigation Section (AIS) using SEES > xmls_Forms > Pseudo - IOM AIS Referral. BF the case for 4 weeks. AIS will make a Contact History note to advise the correct NINO to use. Where the Contact History note advises that the NINO should not be used, you should continue with the TRN. If there is no Contact History note at BF, send a further form.
You should make a Contact History note, see action guide tax80011, of the pseudo record with the correct NINO and proceed to the correct record to carry out any further action.