HMRC Cost-Cutting Programme \'Starts Well\'

13 - 02 - 2013

HM Revenue and Customs has made a good start at reducing its running costs but faces a longer term struggle to improve customer service, a report by the National Audit Office (NAO) has revealed.

HMRC has committed to securing a £1.6 billion reduction in costs over the next four years, while increasing tax revenues, improving customer service and achieving reductions in welfare payments.
According to the NAO, HMRC improved its value for money in 2011-12 and maintained its performance during the first £296m of cuts.
HMRC exceeded its overall 2011-12 target for collecting additional tax revenues, maintained tax collection and reduced the level of tax debt. It improved customer service performance from a low point in 2010-11, but did not meet all of its customer service targets.

‘In one year, HMRC has managed to deliver a third of the savings it is required to deliver over the four years of the spending period, at the same time as maintaining performance in key areas such as maintaining tax collection and reducing tax debt,’ said Amyas Morse, the head of the NAO.
A spokesman for HMRC said: ‘We are now taking a more strategic approach to managing our resources resulting in us answering phone calls faster and turning post around more quickly than ever before.’
From April, HMRC will be aiming to make 80% of people wait no longer than five minutes to speak to a real person.
The cost of calls will also be reduced by the end of the summer.







Foremans LLP Umberlla
Foremans LLP