TaxAdministrationTax credits fiasco leads to IT rethink

Tax credits fiasco leads to IT rethink

The government is tightening up the processes used to monitor the implementation of public sector IT projects, as a result of high-profile IT disasters such as the Inland Revenue's tax credits system.

Link: Revenue recruits 500 ‘tax credits’ staff

In future, IT projects will not pass the Gateway Review process unless they include fallback plans in the event of major problems.

Gateway reviews are used to monitor projects at key stages to guard against failure, and are overseen by The Office of Government Commerce (OGC).

Speaking to the House of Commons’ Work and Pensions Select Committee, OGC chief executive Sir Peter Gershon said: ‘We have just revised and re-launched Gateway guidelines, requiring a more rigorous inclusion of proven fallback arrangement.’

An OGC spokesman said it had always intended to update the guidelines but recent problems with the Inland Revenue’s Tax Credit system had highlighted the need for change.

The Tax Credits system, run by EDS, launched in April 2002. But problems with the system resulted in big backlogs of applications and it is not expected to be fully back on track until March 2005.

The project missed the first three reviews – called Gateway zero, one and two – that cover essentials such as business justification and procurement strategy.

‘The refresh was underway before the Tax Credit system went live. We wanted more rigorous testing and fallback plans, and the Revenue’s problems showed we were on the right lines,’ the spokesman said.

The Work and Pensions Committee is currently reviewing how it can ensure successful IT projects at the Child Support Agency.

Last year’s roll out of a £300m system, developed to support a new formula to calculate maintenance payments, suffered an 11-month delay.

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

5d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

3w 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