HMRC 'could miss out on billions of pounds' as staff focus on Brexit projects
2 min read
HMRC could collect billions of pounds less in tax after staff were forced to put major tasks on hold to work on projects caused by Brexit, it has been claimed.
The taxman is said to have handed MPs a list, which is due to be published within days, showing 39 IT projects and changes have been paused so attention can turn to implementing customs arrangements after Brexit.
The Times says major projects such as George Osborne and Philip Hammond’s “making tax digital” drive, which was seen as ensuring more tax was collected, are among them.
HMRC had estimated that the consequences of those changes would contribute more than £1bn to the exchequer by 2022.
Reforms designed to improve interaction with HMRC such as the “tax-free childcare new front end” and the “future of child benefit transformation project”, which was designed to “improve customer experience, streamline the process and realise efficiencies following move to new IT platform”, have also stopped.
One industry source told the paper the delay was “broadly sensible” because “HMRC and companies have just got too much on their plate”.
They added: There are significant concerns about whether HMRC’s customs systems will be ready for Brexit in any case; we understand they are in the process of transitioning to a new system for which the deadlines are already very tight.”
HMRC told MPs yesterday that businesses would face up to £20bn in costs from Brexit if Britain left without a deal.
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