Policy

Making the administration of the tax system more efficient

Issue

HM Revenue & Customs (HMRC) needs to be smaller and more efficient, updating the organisation and the services we provide to customers.

Making efficiency savings will enable us to invest in measures to reduce tax evasion and avoidance and narrow the tax gap.

Actions

By 2015, HMRC will reduce our costs by 25% compared with 2011. However, we will reinvest almost £1 billion of these savings in measures to bring in additional revenues.

To achieve these savings, HMRC will:

  • make it easier for customers to self-serve, giving them more control over their own tax affairs, for example through better digital services
  • make processes simpler and reduce the need for customers to contact HMRC
  • provide extra help for those who need it, especially around major life events, such as retirement or bereavement
  • invest more in relevant skills for our staff, to improve our understanding of tax risks, tax avoidance and how businesses make commercial decisions
  • consult tax agents on a new approach, which will give them more control of their clients’ transactions.

Background

HMRC is a large and complex business. Our customers include nearly every UK citizen and business. Every day we collect more than £1.2 billion in revenue and pay out more than £109 million in benefits and credits.

The Chancellor’s 2010 Spending Review committed HMRC to making efficiency savings of 25% by making better use of new technology, using less office space and spending less on IT contracts.

HMRC’s Business Plan 2012 to 2015, published in 2011, sets out the changes that we’re making to our products and services and explains why we’re making them.

During 2010 to 2011, we reduced the size of HMRC’s workforce by 2,400 and released 116,000 square metres of office space. Since 2005, HMRC has achieved real-terms savings of £1.4 billion, at the same time as bringing in more revenue than ever before.

Help us improve GOV.UK

Please don't include any personal or financial information, for example your National Insurance or credit card numbers.