TaxAdministration£75m IT costs for Revenue and Customs

£75m IT costs for Revenue and Customs

The cost of integrating the Inland Revenue with Customs will reach at least £75m and could rise higher, the Treasury has revealed today.

Link Merger bill pormises improved tax services

According to the Treasury’s ‘regulatory impact assessment’, the Revenue and Customs will incur £75m costs mainly due to integrating the two IT systems between 2004 and 2006.

But the figure could climb higher due to unforseen costs arising out of IT overlaps between the two departments.

‘The known costs that arise directly from the creation of Revenue and Customs are anticipated to be to the order of £75m over 2004/05 and 2005/06, including the preparatory costs of alignment of basic services, such as work to put the future IT desktop requirements of the departments on a common platform,’ The Treasury said.

‘Further costs from integration may arise in due course, for example, from changes to join up some of the services the two departments currently provide to business customers independently. These cannot be quantified until the associated policies have been agreed.’

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

2d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

3w Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

3m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

1y Fraser Simpson, Reporter
Brexit: Five questions accountants should be asking

Accounting Firms Brexit: Five questions accountants should be asking

1y Fraser Simpson, Reporter