HMRC postpones tax system changes

Following last week's report by the National Audits Office (NAO), which questioned HM Revenues and Customs' (HMRC) plans to change the payroll tax systems, the plan has been postponed, reports say.

Concern over the tax body's ability to handle sufficient data related to PAYE payroll tax systems by the planned October deadline prompted it to push forward the date, according to VNU Net.

According to a spokesman from HMRC, no date has been set yet in the move calculated to allow it to carry out changes to counter unforeseen huge transaction volumes.

"We have decided to defer implementation while we make design changes to accommodate the higher volumes," said the spokesman.

Also delayed was the implementation of new compliance and enforcement, enterprise infrastructure and government banking systems, which are part of plans to boost security.

The changes were aimed at bringing efficiency into HMRC in a bid to save £11.5 billion by 2011.