Rachael Singh, Accountancy Age, Thursday 16 September 2010 at 10:12:00

HM Revenue & Customs' IT director claims the department could makesavings of 1bn by making efficiency improvements to the division

HMRC could save 1bn by squeezing its technology requirements, according toits IT director Mark Hall.

Hall said he was working with contractors Capgemini to reduce computersystems in the department from more than 600 to 13, as well as implementingother efficiency measuresSilicon.comreports.

The overhaul will include consolidating the current 12 systems used tocalculate PAYE taxes into a single system ? National Insurance PAYE System.

"We had a challenging set of legacy systems and, with the cost of runningthose increasing every year, every pound that we spent on running them was apound we could not spend on investment," said Hall.

Capgemini, who are paid 750m annually, were awarded the contract in 2004 andhave reduced running costs of the IT division by 152m a year. It estimates itwill save the IT department 1.2bn by the end of its contract in 2017.

Further reading:

HMRCrejects "dysfunctional" slur from MPs after PAYE blunders

HMRCto lose 10m from Vantis collapse

HMRCtries to head off PAYE appeals problems