UK tax authority HM Revenue and Customs (HMRC) has announced that it is to close 137 offices over the next 12 years and create 13 new “regional centers” by 2021.
The plans form part of a modernization program that, according to the Department, will enable it to give taxpayers the modern services they expect, and at a lower cost. The changes are expected to generate savings of GBP100m (USD152m) a year by 2025. HMRC currently has 170 offices and 58,000 full-time equivalent staff.
The regional centers will vary in size and in terms of the mix of operational, tax professional, and corporate services work they conduct. The smallest will be served by between 1,200 and 1,300 full-time equivalent staff, and the largest, operationally-focused centers will hold more than 6,000. The first center will open in 2016-17, and others will follow between 2017 and 2021.
The offices earmarked for closure will be shut as lease breaks arise or at the end of HMRC’s contract with Mapeley in 2021. HMRC said it expects the majority of staff will be able to move from their current offices to a regional center, and is phasing in the moves in order to minimize redundancies. It will however aim to have fewer staff in the future.
Source: tax-news.com
