Taxman plans £235m cuts to IT

HMRC IS aiming to reduce its IT spend by £235m, according to a National Audit Office (NAO) report.

The Taxman’s running costs in 2010-11 were £3.6bn and it is tasked with reducing this by £1.6bn over four years.

HMRC needs to improve its understanding of costs if it is to reach ambitious targets for cutting costs, the report added. It also has to find extra tax revenues of £7bn over this period.

NAO chief Amyas Morse said in a report on cost reductions at the Taxman: “Reducing running costs by £1.6bn over four years is a big challenge for HMRC.

“It is making progress but there is no contingency in its plans. To achieve value for money, it needs to better define the service it is aiming for, improve its understanding of costs and develop its implementation plan.”

Read the NAO’s report here.




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