Spending Review: £100m to clear PAYE backlog


The taxman’s PAYE operations will receive a £100m boost from the government.

In an attempt to clear up a backlog of PAYE coding inaccuracies, today’s spending review saw the taxman a pledge to invest £100m into improving the operation of PAYE.

The investment came as part of HM Revenue & Customs’ settlement, which also included a £900m reallocation of resources to address the tax gap and tackle avoidance and evasion, which is aiming to bring in an extra £7bn a year in revenues.

HMRC will have to make 15% resource savings during the next four years, and achieve 25% efficiency savings through the use of new technology, rationalising its estate and maxmising savings from IT contracts.

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