TaxCorporate Tax7,500 jobs cut at HMRC

7,500 jobs cut at HMRC

HMRC plans to cut 5,000 more in next 18 months to meet 12,500 target

HM Revenue & Customs has cut 7,500 staff, it said today, updating MPs on
ithe progress of its job cut programme.

The department said it has to cut 5,000 jobs during the next 18 months to
meet efficiency targets set by the government.

In today’s scrutiny of HMRC’s annual report 2005/2006, the Treasury
sub-committee asked HMRC acting chairman Paul Gray if the department was on
target to meet efficiency gains by 31 March 2008.

HMRC was set the deadline by the government in 2004 to
lose a net 12,500 jobs at the department and make annual savings of £507m.

Gray said the department was on target to meet the efficiencies.

Another 12,500 jobs could go between 2008 and 2011 as
further restructuring takes place at the department, although the figure was
considered an estimate, Gray said.

He also confirmed that new carousel fraud figures would be released in the
pre-Budget Report.

HMRC was also criticised at the meeting for not producing analysis of
potential increases in tax take following implementation of the
Varney
review
, which proposed tax clearance procedures for corporates.

Further reading:

HMRC to get help from taxpayers on future
direction

Varney to step down as chairman of HMRC

HMRC’s budget cuts raise fears on service

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