HMRC building

Tax returns to go offshore?

HMRC reported to be mulling the idea of outsourcing tax return processing to India

Written by Accountancy Age

HMRC is thought to be looking at outsourcing the processing of tax returns to foreign companies in another drive to reduce costs, it has been reported.

The tax body and its Aspire consortium of IT contractors, which includes Capgemini and Fujitsu, are studying a range of options in order to save £200m a year, one of which is the offshoring of tax returns, most likely to India, reports tax-news.com

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Although there are not yet specific proposals in relation to this option, it will raise concerns over the privacy of data, especially after the same body lost the details of 25 million people in 2007.

However, HMRC has insisted that under the terms of the Aspire contract, IT cannot be delivered from outside the UK, and that there are no plans to change this restriction.

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