HMRC’s £2.7bn investment in vain, NAO warns

The National Audit Office (NAO) yesterday warned a £2.7bn investment designed
to transform the way HM
Revenue & Customs
(HMRC) works may not pay off.

The warning comes as the department announced it was postponing its new PAYE
payroll tax system amid concerns it would not be ready to handle the necessary
volume of transactions by its original October launch date.

The system is part of a wider £11.5bn savings programme, driven by the
department’s need to cut running costs by almost 15% over three years as part of
an efficiency drive across government.

NAO warned yesterday that HMRC’s estimates of additional tax yield were
volatile and assumed collection in full. Parts of the programme were revised and
postponed, and ‘the overall benefits carry high levels of uncertainty’.

Further reading:

NAO unveils massive HMRC tax credit errors

the Financial Times story

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