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HMRC agrees to end Aspire IT agreement

HM Revenue & Customs (HMRC) has revealed that it has agreed terms with its main IT suppliers as part of Aspire IT’s £10bn phased exit.

The Aspire contract is among the UK’s largest public sector technology contracts, but it expires next year.

The Public Accounts Committee warned during the last parliament that the tax body’s approach to IT could result in its systems being left in disarray as it searches for a replacement for Aspire. HMRC disagreed with the Committee’s evaluation, replying that it was “making significant progress in preparing for a smooth and effective transition” from Aspire.

It was revealed last year that HMRC worked with an outsourced IT firm to increase its ability to deal with tax credits-related fraud and mistakes. However, the firm in question dropped £284.5m short of its savings target as a result of a technology failure that saw its 600 employees out of work for several months, without losing pay.

HMRC hired Synnex-Concentrix UK having agreeing to payment terms based purely on results, with a goal of increasing compliance interventions. Up until this point, the contract benefits have failed to be as high as expected, according to a National Audit Office evaluation.

HMRC is clearly aware of its reputation with regards to IT and is doing everything that it can to repair it. The more It improves its technology capabilities, the more streamlined it will become and the more it will be able to carry out its mission to recognise any accounting red flags. All this shows why it is more important than ever for business owners to employ the services of an accountant in the Wirral.

Posted by Mark
April 13, 2016
HMRC

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