Source · Select Committees · Public Accounts Committee
Recommendation 28
28
Accepted
HMRC faces significant data migration challenges for 1.6 million Self Assessment taxpayer records.
Conclusion
A significant task for HMRC is to move taxpayer data from its old Self Assessment system to its new tax system. HMRC told us that its old legacy systems hold records in a fundamentally different way, and it had expected the conversion into the new system to be simpler than it proved to be for VAT. HMRC had learned this from its experience from the programme’s rollout for VAT and had then had to change its assumptions as it moved towards planning the Self Assessment phase. HMRC told us it was expecting that at least 30% of its Self Assessment taxpayer records would need manual work in order to ensure taxpayer data were moved to the new system correctly. HMRC had not yet started the data migration for Self Assessment, but it was planning to move 1.6 million taxpayer records—which covers the first two cohorts for Self Assessment—before those taxpayers start enrolling on the Making Tax Digital programme.68 Working with software providers
Government Response Summary
The government has commissioned a data quality assessment of Self-Assessment data held on legacy systems by specialist companies, providing technical assurance for the significant and complex task of moving taxpayer records.
Government Response
Accepted
HM Government
Accepted
5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 HMRC has undertaken detailed work to assure its delivery plan for MTD. HMRC is confident its budget for the next two years reflects the resourcing and funding requirements needed to achieve the deliverables within this plan. 5.3 A programme of MTD’s scale and complexity carries inherent risk. Its delivery roadmap to mandation presents an ambitious but realistic timetable. Successful delivery remains contingent on external software developers building MTD products, and engagement from the agent community to support customer readiness; it also assumes stability in HMRC’s resource and internal capacity to deliver MTD. 5.4 HMRC will continue to monitor progress against its plans and key performance indicators – alongside its approach to risk management – through internal governance and independent technical and other assurance. This includes work to develop contingency plans to respond swiftly to any potential delays, minimising impacts on customers and stakeholders. 5.5 MTD was reviewed independently by the IPA in March 2023 and will be reviewed again in February 2024. MTD’s delivery and budget receives additional scrutiny through HM Treasury checkpoints, HMRC’s internal audit function, internal governance and investment boards. 5.6 For further technical assurance of moving taxpayer records, HMRC has commissioned a data quality assessment of the Self-Assessment data held on legacy systems. This assessment is being undertaken by a number of suppliers including a specialist data company.