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HMRC Is Shite
HMRC Is Shite
Dedicated to the taxpayers of Britain, and the employees of Her Majesty's Revenue and Customs (HMRC), who have to endure the monumental shambles that is HMRC.
Thursday, 8 April 2010
Hypocrisy, HMRC and Mapeley
In December 2009 I wrote about HMRC's contract with Mapeley (an offshore property company):
"The National Audit Office (NAO) have issued a report that gives HMRC a well deserved kicking for this contract.
HMRC had promised £1.2BN of savings in maintenance and other costs, as a result of signing with Mapeley. In reality the savings will be around £900M, possibly falling to £650M.
The NAO go on to state that there is now a "significant risk" that the contract will not deliver value for money over the rest of its life.
It seems that, according to the NAO, HMRC had no long-term plan regarding the sale and didn't even know that Mapeley was offshore!
The NAO is of the view that HMRC had not recognised the contract as a major strategic asset, and had not allocated the requisite commercial skills to managing it."
The Commons Public Accounts Committee (PAC) has now also made a few comments about the contract. It notes that HMRC lacked the "commercial skills or business acumen" to manage such a large contract effectively, while its reputation had been damaged by its involvement with an offshore firm (seemingly HMRC didn't even realise at the time that Mapeley was offshore).
HMRC signed a 20 year contract with Mapeley STEPS in 2001 to take over the ownership and management of 60% of its estate, it expected to pay £3.3BN at today's prices.
However, it has already overpaid £312M and the final cost is expected to hit £3.87BN.
PAC states that HMRC should have realised it would have to take a more proactive approach. Most especially as Mapeley was a new company, which had put in a low bid.
In fact Mapeley has already had to seek financial assistance from HMRC to deal with "serious cash flow problems", as a result of the economic downturn and falling property values.
How ironic that HMRC, a staunch and shouty opponent of tax avoidance has in fact signed a contract that involves tax avoidance through an offshore company.
Clearly a case of do as we say, rather than do as we do!
Tax does have to be taxing.
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