The taxman has placed cutting property budgets and reliance on online filing
at the centre of its programme to slash department costs by £674m by 2011.
HM Revenue & Customs set the cost-cutting target in its value for money
delivery agreement, which was made public last week.
HMRC hopes to save £220m by slimming down its properties and moving offices
out of London and the South East. ‘Savings will be made by reducing the size of
HMRC’s estate… and disposal or sub-letting of buildings,’ HMRC said in a
E-filing is set to be the other major contributor to cost cuts, with £85m
expected to be saved by 2011 through promoting online filing. The use of IT is
expected to reduce headcount by 3,000 full-time posts by 2013/2014.
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Making Tax Digital will impose significant additional tax compliance costs on small businesses for little or no medium term benefit, tax and small business experts told MPs