HMRC Planning to Cut Its Budget by 15%
HM Revenue & Customs is planning to cut its overall budget by 25% in order to comply with the government policy to cover the deficit of £109bn structural budget.
The Chancellor of HMRC namely George Osborne said today that HMRC will try to cut its budget by using the latest technology and getting better contracts and reasonable prices.
The Chancellor also confirmed that in order to fulfill the deficit, the Government will be running a campaign of £900m in order to recover the £7bn unpaid taxes for this year. This campaign will help government a lot in covering the deficit of £109bn.
HMRC is also planning to use the latest technology to improve the risk assessment in collecting taxes. Using the technology, HMRC will be be able to better join the information of the tax payer.
HMRC will also cut down its cost on national insurance number cards and will replace them with letters which will save up to £1m every year.
The chief executive of ICAEW Michael Izza also gave a statement on this and said that HMRC has already made enough savings in recent years using efficient methods.
The duty of HMRC is to create a fair system to collect the tax from individuals and companies in UK and if it is able to cut its cost and make its system better through technology then surely this will help governments a lot in covering the deficit.
Next month, government will be releasing different business plans for next four years. These plans will be followed accordingly and will obviously be made while considering the current situation of the government and the problems it is facing.