Accounting Officer Assessment Summary: HMRC Protect Connect Programme
Published 1 June 2021
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It is normal practice for Accounting Officers to scrutinise significant policy proposals or plans to start or vary major projects and assess whether they measure up to the standards set out in HM Treasury’s Managing Public Money guidelines.
From April 2017, the government has committed to make a summary of the key points from these assessments available to Parliament when an Accounting Officer has agreed an assessment of a project within the Government Major Projects Portfolio.
Background and context
HMRC’s Customer Compliance Group (CCG) provides assurance that taxpayers declare and pay the right amount of tax at the right time. CCG currently uses a system called Connect to identify potential risks of non-compliance, including those associated with repayments for Value Added Tax (VAT) and Income Tax Self Assessment (SA).
The system is multi-faceted, with a number of discrete components, many of which were developed over 10 years ago and is no longer able to keep pace with and adapt to changes in the tax system.
The technology to be delivered by the Protect Connect Programme (PCP) will replace the VAT and SA components of the Connect system, as well as the VAT regime risk profiling tools, with a new solution which utilises the SAS™ Detection and Investigation tools.
The new platform will enable the Customer Compliance Group (CCG) to draw on industry-leading data analytics technology. This functionality will be used to evaluate repayment claims, around 5.5 million in 2019 to 2020, worth over £80 billion.
The SAS platform which is being developed by the programme is already being used successfully to support compliance activity for the coronavirus (COVID-19) support schemes that HMRC is responsible for.
The programme is subject to the requirements of the Government Major Projects Portfolio and is subject to review by the Infrastructure and Projects Authority (IPA), the first review is due in spring 2021.
Regularity
The programme is a technology replacement programme, directly replacing components of the Connect system with a new platform and tools from SAS. The programme does not require any additional legislation and complies with Parliamentary requirements for the control of expenditure, with programme funds being applied only to the extent and for the purposes authorised by Parliament.
The Programme adheres to the relevant HM Treasury approval procedures.
Propriety
The programme continues to comply with Parliamentary requirements for the control of expenditure, with funds being applied only to the extent and for the purposes authorised by Parliament.
Value for money
Value for money has been assessed, a full options appraisal has been documented in the programme business case. The preferred option for delivery offers the highest potential to meet critical success factors and minimise IT delivery risks for HMRC, providing best value for money.
To secure value for money, all contracts awarded will be subject to competitive tendering or benchmarking as required by HMRC procurement standards. The costs and benefits of the programme will be measured and checked against the expectations set in the approved business case.
The appropriate commercial, digital and technology spend control information has been produced and shared with HM Treasury, Government Digital Services and Cabinet Office.
Feasibility
An external review was recently conducted by McKinsey’s which confirmed that: ‘the technology architecture and design is fit for purpose for PCP, and will provide sufficient day one functionality for like-for-like technical outcomes as well as a platform for future services’.
The programme leadership team, supported by HMRC’s delivery partners, has the skills and experience needed to ensure the technical feasibility of the project deliverables and achieve the major milestones within the required timeframe and budget envelope.
Following the recent commercial review the programme has implemented a number of changes to strengthen its commercial management, including more transparency over supplier’s plan and a dedicated external commercial manager.
Conclusion
As the Accounting Officer for HMRC I have considered my assessment of the Protect Connect Programme and on balance, the proposal is value for money and deliverable, I have approved it as of 4 May 2021.
I have prepared this summary to set out the key points which informed my decision. If any of these factors change materially during the lifetime of this programme, I undertake to prepare a revised summary, setting out my assessment of them.
This summary will be published on the government’s website (GOV.UK). Copies will be deposited in the library of the House of Commons and sent to the Comptroller and Auditor General and Treasury Officer of Accounts.
Accounting Officer’s name: Jim Harra, First Permanent Secretary and Chief Executive, HM Revenue and Customs..
Date of signing: 4 May 2021