HMRC to bring services under direct control in IT shake-up

HMRC to bring services under direct control in IT shake-up

HMRC confirms further changes to its IT systems as its Aspire contract approaches its end

HM REVENUE & CUSTOMS will bring some existing IT services under its direct control as it plans the transition to a new IT delivery model following the ending of the Aspire contract in 2017.

It is hoped the changes will enable HMRC to make savings of around 24% on its £800m annual IT budget by 2020/21 while maintaining consistent delivery of services to customers.

HMRC also announced that Capgemini would deliver ‘test and release’ services until 2020, to provide “vital quality assurance” during the switch.

The changeover in the IT contract has proven controversial in recent times, with the Public Accounts Committee warning in the last parliament that HMRC’s approach to computing could leave its systems in “havoc” as it seeks to replace its Apsire system by 2017. HMRC rejected that assessment at the time, stating it was “making significant progress in preparing for a smooth and effective transition” from Aspire.

Alongside the move, the tax authority has also confirmed details of its planned adoption of cloud computing for its tax systems. The tax platform – in concert with the increased cloud adoption – will allow the department to expand on digital services such as the online self-assessment online.

It is expected the platform will also allow the department to easily build and deploy web-based applications, and alter the way in which integral systems – such as the calculation of taxpayers’ liabilities – are managed.

HMRC chief digital and information officer Mark Dearnley said: “We have an ambitious digital vision – to transform our IT services and use the data we hold in smarter ways, so we can deliver world-beating digital services for our customers and colleagues.

“The changes we’re announcing today will allow us to maintain consistency of service for customers while we plan for the future which, as now, will include a mixed model of both internal and external delivery using multiple partners.”

Earlier this year, it emerged an outsourced IT company engaged by HMRC to provide additional capacity to tackle tax credits fraud and error fell £284.5m short of its savings target due to an IT failure that menat its 600 staff could not work for three months.

Synnex-Concentrix UK was hired on a payments-by-results basis with the aim of increasing the number of compliance interventions. So far, the benefits of the contract have been “lower than anticipated”, according to an assessment by the National Audit Office.

 

Whitepaper

The Future of Finance is in the CFO's Hands

Business The Future of Finance is in the CFO's Hands

2m
Save a Week a Month Consolidating Accounts

Accounting Software Save a Week a Month Consolidating Accounts

3m
Mitigating Risk Through Internal Control

Legal Mitigating Risk Through Internal Control

3m
Could tax season have run more efficiently?

Corporate Tax Could tax season have run more efficiently?

4m

Related Articles

Phone security expert lauds HMRC’s response to scam surge

HMRC Phone security expert lauds HMRC’s response to scam surge

2w Dave Beach
Self-learning technology could perform 90% of data entry tasks - but will it take your job?

Technology Self-learning technology could perform 90% of data entry tasks - but will it take your job?

1m Tom Lemmon
What do contractors need to know about Making Tax Digital?

Making Tax Digital What do contractors need to know about Making Tax Digital?

2m Richard Hepburn, Operations Manager, Gorilla Accounting
How bridging software can ease the transition to Making Tax Digital

Making Tax Digital How bridging software can ease the transition to Making Tax Digital

3m Wolters Kluwer | Sponsored
Keeping ahead of Making Tax Digital: Bookkeeping Software for 2019

Accounting Software Keeping ahead of Making Tax Digital: Bookkeeping Software for 2019

5m Chrissy Chiu
QuickBooks releases MTD pilots and tools to make the transition easy

Making Tax Digital QuickBooks releases MTD pilots and tools to make the transition easy

5m Beth McLoughlin, Managing Editor
Should Making Tax Digital be delayed until 2022?

Making Tax Digital Should Making Tax Digital be delayed until 2022?

7m Beth McLoughlin, Managing Editor
£2.5bn underpayment by UK tech sector, according to HMRC

HMRC £2.5bn underpayment by UK tech sector, according to HMRC

8m Emanuela Hawker, Reporter