HM Revenue and Customs has settled a long-running legal dispute with IT
supplier EDS over problems with the tax credit IT system introduced in 2003.
EDS has agreed to pay £26.5m to HMRC settling in full an agreement reached in
2005 to pay a total of £71.25m
A spokesman for HMRC said the department ‘welcomes the settlement’.
Confirmation the case has now been resolved brings to an end a bitter and
high-profile dispute between the government department and one of the world’s
largest IT suppliers.
It will also be a relief for the government which has been plagued by a
series of high-profile IT fiascos.
Problems with the EDS IT system meant thousands of families were unexpectedly
overpaid after the government introduced the tax credit system.
The tax credits were supported by a system built by EDS – then HMRCs main IT
A spokesman for EDS declined to comment when asked to confirm settlement of
the case, saying HMRC were responsible for any communication regarding the
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.