The IT services giant has been on the receiving end of a series of attacks from the civil service, government and opposition over systems that failed to deliver what it promised.

'We have had stability problems with the system in the first few months of operation and the stability problems have caused the effects you've referred to,' Bill Thomas, MD of EDS UK & Ireland, told the Times newspaper. 'It has meant that staff within the Inland Revenue who have been trying to answer queries have been under immense pressure. There have been very serious problems around the stability of that system.'

At the end of May Accountancy Age reported that the Revenue was considering imposing financial penalties on EDS for its part in the problems. 'It is certainly not out of the question,' said Sir Nick Montagu.