Information has been provided by HMRC’s Software Developers Support Team (SDST) that will be used to update the PAYE Service Issues page
"In July we told you that a small number of our customers were experiencing when submitting Real Time Information (RTI) data for employees with National Insurance numbers with prefix 'KC'
From 15 November 2016 customers will be able to submit Real Time Information data for employees using this National Insurance number prefix.
However, we are aware that some software products, including HMRC's Basic PAYE Tools, will not be updated before April 2017. If this applies to you then you should continue to follow this guidance when submitting your Real Time Information:
the National Insurance number field should be left blank. You should make sure the employee address field is completed in those cases.If you/your employee has a 'KC' National Insurance number, they don't need to request a new one. You should continue to apply tax codes and notices you receive from us in the normal way"
Other updates from SDST confirmed the NINO validation will be changed as follows:
The characters D F I Q U and V are not used as either the first or second letter of a NINO prefix. The letter O is not used as the second letter of a prefix. Prefixes BG, GB, KN, NK, NT, TN and ZZ are not to be used.Clients should liaise with payroll software providers to ensure systems are compliant in good time for the changes.