Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Accepted
HMRC’s legacy IT systems remediation efforts are behind schedule and over budget.
Conclusion
HMRC has one of the largest and most complex IT estates in the UK, and it faces a significant challenge to modernise its IT infrastructure to keep pace with changing technology. In 2020 the NAO reported that HMRC recognised 36 Senior grades include all grades from higher executive officers up to and including senior civil servants. Less than 1% of HM Revenue & Customs’ staff were senior civil servants in March 2024. C&AG’s Report, para 2.10 and Figure 7 37 Qq 38, 42 38 C&AG’s Report, para 2.24 39 Comptroller and Auditor General, Managing tax compliance following the pandemic, Session 2022–23, HC 957, National Audit Office, December 2022 40 C&AG’s Report, paras 2.24, 2.29 41 Qq 12, 42; C&AG’s Report, para 2.29 15 the state of its IT systems as a significant risk, due to the postponement of operational maintenance and systems upgrades to secure cost savings.42 The government provided additional funding in Spending Review 2020 to improve the agility, resilience and security of HMRC’s IT. Remediating legacy systems has taken HMRC longer than it had expected and is costing more.43
Government Response Summary
The government agrees with the committee's finding and commits to writing to the Committee by September 2025 with plans, forecast costs, and expected savings for remediating its legacy IT systems, with progress to be reported in Annual Report and Accounts.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: September 2025 4.2 HMRC will write to the Committee on its plans to address the remediation of its legacy IT systems with a forecast cost of investments and expected savings. Progress and spending on remediation will be available within the Annual Report and Accounts.