HM Revenue & Customs (HMRC) is to replace 12 geographical databases and give staff access to a single customer view of all pay, tax, National Insurance (NI) and pension data.

Moving from 1980s technology to a modern IT platform will improve services, says chief information officer Steve Lamey.

Computer problems in HMRC have led to over- and under-payments to taxpayers, highlighted in a National Audit Office (NAO) report last week.

But Lamey says the technology migration will help HMRC ensure workers’ tax is correct and respond to customer questions faster and more accurately.

‘We will also be able to resolve more enquiries ourselves instead of needing to go back to customers with questions,’ he said.

The department plans to move the existing PAYE system to the NI system in 2008-09, but is transferring data in advance.

‘Much of the data we need is already on our NI system, and the move enables us to avoid duplication of data,’ said Lamey.

NAO head Sir John Bourn says HMRC’s computer systems are no longer adequate where people have more than one job or change employers frequently.

‘This has led to employees paying too much or too little tax,’ he said. ‘HMRC has put in place a number of measures to improve the quality and timeliness of PAYE processing, in advance of its new computer solution in 2008.