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HMRC belt-tightening sees savings targets surpassed

A recent report from the National Audit Office has shown that HMRC managed to make almost £300m in savings in the year ending 31st March 2012 – which constitutes around 30% of the savings HMRC has to make in the next four years.

The department is reported to have exceeded its original savings target by around 19%, making its savings in a number of areas.

HMRC reduced its staff numbers by around 2,400, froze budgeted pay increases and reduced the amount spent on IT services and equipment. The department also completely vacated more than 100 buildings to reduce its total estate, and also sought to cut expendable contracts like printing and postage.

Productivity was reportedly improved through analysing the efficiency of the working methods currently in place.

By 2015, HMRC has anticipated a loss of around 10,000 full-time equivalent members of staff, as well as more reductions in its premises.

The head of the National Audit Office, Amyas Morse, spoke about the savings and highlighted the fact that, while it surpassed its savings targets, HMRC still managed to maintain performance in key areas like tax collection and the reduction of tax debt.

While the department is chasing up any tax owed, contractors across the UK are advised to seek specialist contractor accountancy services, which will allow them to minimise their tax bills through a legitimate route.

Morse continued:

“HMRC is moving from making tactical efficiency savings and quick wins towards a more strategic approach to managing its resources.”

Morse further explained that HMRC’s biggest challenge to come will be to make even greater reductions in spending while maintaining overall performance.

Posted by Louise
February 19, 2013
HMRC

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