TaxPersonal TaxHMRC to save £1bn in IT costs

HMRC to save £1bn in IT costs

HM Revenue & Customs' IT director claims the department could make savings of £1bn by making efficiency improvements to the division

HMRC could save £1bn by squeezing its technology requirements, according to
its IT director Mark Hall.

Hall said he was working with contractors Capgemini to reduce computer
systems in the department from more than 600 to 13, as well as implementing
other efficiency measures
Silicon.com
reports.

The overhaul will include consolidating the current 12 systems used to
calculate PAYE taxes into a single system – National Insurance PAYE System.

“We had a challenging set of legacy systems and, with the cost of running
those increasing every year, every pound that we spent on running them was a
pound we could not spend on investment,” said Hall.

Capgemini, who are paid £750m annually, were awarded the contract in 2004 and
have reduced running costs of the IT division by £152m a year. It estimates it
will save the IT department £1.2bn by the end of its contract in 2017.

Further reading:

HMRC
rejects “dysfunctional” slur from MPs after PAYE blunders

HMRC
to lose £10m from Vantis collapse

HMRC
tries to head off PAYE appeals problems

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