A couple of weeks ago I wrote that The NAO report into HMRC’s 2012-2013 accounts noted that the cost of implementing RTI is £356.6M (£115M over budget).
HMRC has issued a rebuttal of sorts, blaming the high costs on an extended pilot of the system.
HMRC had initially intended to put a few hundred PAYE schemes through a six-month pilot, but decided later to include 60,000 on a year-long test-run of the system.
Payroll World quote Suzanne Newton, RTI programme director at HMRC, who explained to a select committee of MPs that in recognition of the significant change brought about by RTI HMRC needed to “invest well” to ensure a successful implementation.
“Our initial cost assumptions back in 2010 were based on delivering a rather different solution, but as we worked through and consulted with stakeholders what was put through the pilot, and ultimately into the national rollout, changed quite considerably.”In other words reality didn't match expectations/budget!
The good news is that “only in the highly unlikely event of a catastrophic incident which took out a whole data centre” would the RTI system be unable to continue its normal output.
Tax does have to be taxing.
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