Supplementary written evidence submitted
by HM Revenue and Customs
1. Q208: SALLY
KEEBLE
The percentage of calls answered by Contact Centres
during peak periods.
HMRC's Departmental Report gives an average
performance figure across the year (57%) and reports details of
weekly performance outside peaks (75% in all but three weeks),
but does not give more details of performance during peak periods.
The contact centres' busiest months are April,
May, June and July due to Tax Credit Renewals. July is a particularly
busy month as a significant proportion of Tax Credit claimants
renew close to the deadline of 31 July. There is a further
peak in August and September when Child Benefit and Tax Credit
claimants notify whether their 16 year olds will be continuing
with their education and the claims of those Tax Credit claimants
who have failed to renew are terminated. There is also a peak
in January with the Self Assessment (SA) Online filing deadline.
The percentage of call attempts answered in
these months in 2008-09 are highlighted in the table below
alongside the monthly performance over the first six months of
this year—2009-10. The table shows that performance has
improved significantly this year. For example, in July 09/10 HMRC
answered 68% of calls compared to 33% in July 08/09. In September
09/10 HMRC answered 74% of calls compared to 52% in September
08/09.
|
| Month | Peak Period (highlighted)
| % Call Attempts Answered 08/09
| % Call Attempts Answered 09/10
|
|
| Apr | New Tax Year—PAYE Coding/Tax Credit Renewals
| 56% | 77%
|
| May | PAYE Coding/Tax Credit Renewals
| 44% | 68%
|
| Jun | Tax Credit Renewals |
50% | 80%
|
| Jul | Tax Credit Renewals |
33% | 68%
|
| Aug | Tax Credit Terminations and Child Benefit Full Time Non Advanced Education (FTNAE) Notifications
| 66% | 73%
|
| Sep | Child Benefit FTNAE Notifications
| 52% | 74%
|
| Oct | | 76%
| |
| Nov | | 86%
| |
| Dec | | 85%
| |
| Jan | Online Services/Taxes Helplines Final Filing date for SA Tax Returns
| 61% |
|
| Feb | |
84% |
|
| Mar | |
78% |
|
| Total |
| 57% |
|
|
2. Q218: SALLY KEEBLE
The statistics on take-up of the Childcare element attached
to either the Child Tax Credit or the Working Tax Credit.
A take-up rate for the childcare element cannot be calculated
in the same way as for Working Tax Credit or Child Tax Credit.
This is because we do not have an estimate of the number of people
who are eligible for the childcare element. The administrative
and survey data we currently hold does not allow us to determine
which tax credit recipients are entitled to, but not claiming
the childcare element.
The table below gives estimates of the number of families
benefiting from the childcare element at points in time based
on our snapshot statistics for tax credits awards. This number
has increased by 78% since New Tax Credits were introduced in
2003 and also there are over now twice as many families benefiting
from it as from the childcare tax credit in the Working Families
Tax Credit, the predecessor system. However during this time the
number of families eligible for the child care element will also
have grown, for example the Government has increased the amount
of support in tax credits by increasing the proportion and maximum
costs allowed for child care as well as increasing the child element
above indexation.
FAMILIES BENEFITING FROM THE CHILDCARE ELEMENT
|
| Numbers benefiting1
| Average weekly help
|
|
| July 2003 | 264,400
| £43.20 |
| October 2003 | 285,600
| £43.43 |
| April 2004 | 317,700
| £43.67 |
| December 2004 | 331,300
| £45.75 |
| April 2005 | 337,400
| £45.60 |
| December 2005 | 356,000
| £48.97 |
| April 20062 | 374,300
| £49.90 |
| December 20062 | 395,800
| £60.13 |
| April 2007 | 413,700
| £61.26 |
| December 2007 | 427,600
| £64.19 |
| April 2008 | 448,800
| £65.30 |
| December 2008 | 461,500
| £68.37 |
| April 2009 | 470,400
| £68.69 |
|
Notes
1. Those claiming the childcare element and with CTC above the family element.
2. Proportion of childcare costs allowed increased from 70% to 80% on 6 April 2006. The higher rate would be reflected in the December 2006 snapshot onwards. The April 2006 snapshot was taken on 5 April 2006 so would be based on 70% of costs allowed.
3. Source: HMRC Provisional Statistics at snap shot dates available at http://www.hmrc.gov.uk/stats/personal-tax-credits/cwtc-quarterly-stats.htm
|
Further analysis of the number of families receiving the
child care element of the Working Tax Credit can be found in the
statistics published on our website at http://www.hmrc.gov.uk/stats/personal-tax-credits/cwtc-quarterly-stats.htm
3. Q233-Q235: MARK
TODD
A summary of the status of HMRC IT resources.
Our IT systems have evolved over a number of years, and the
IT estate has grown in size and complexity. The IT estate has
changed to incorporate the merger of HM Customs and Excise and
Inland Revenue, and as new policies have arisen, we have also
made further additions to the IT estate.
There are 92 systems which are critical to HMRC's core
processes. These have been subject to significant investment over
the last two to three years; including programmes such as Carter
and the new PAYE service. The availability of core systems remains
in line with industry comparisons; with 99.74% availability. The
remainder of the Departments systems differ and vary in terms
of performance and quality. Our strategy is to consolidate systems,
remove complexity and prioritise investment where it will make
the greatest difference.
During 2008-09 HMRC have also invested in the IT infrastructure
that supports the "core" systems, closing two old data
centres, updating key infrastructure and improving security
The agreement with Aspire, announced on 29 October,
will provide some of the investment to further standardise, simplify
and modernise the IT estate.
4. Q239-Q240: MARK
TODD
Information on HMRC plans to mitigate the IT disaster recovery
risk.
113 of HMRC's systems are considered as high priority
for support within the Departmental Business Impact Assessment
(DBIA). HMRC have 46 systems that have formal IT Disaster
recovery (DR) in place. Three systems do not require IT DR, and
all other systems, where appropriate, have regular back up and
system documentation maintained.
During 2008-09 investment in DR has been targeted at
firstly the high priority areas of SA online and Tax Credits payments
and secondly at reducing the likelihood of incident by closing
two old data centres and relocating key systems.
Further mitigation of this risk remains a priority for the
department, with further measures being considered as part of
the HMRC's 2010-11 Business Planning round.
5. Q260: NICK AINGER
The pattern of Senior Civil Servant (SCS) departures over time.
In 2006-07 the rate of departures in the SCS was almost
identical to the overall staff departure rate (10.15% of SCS population
compared to 10.92% of overall staff population). In 2007-08 the
number of SCS departures increased by 15 from the previous
year to 55 as did the rate of departure when compared with
overall staff leavers (14.03% for SCS compared with 8.81% overall).
Although there was a slight reduction in the number of SCS departures
in 2008-09 (49), the rate of SCS departures remained higher
than the overall staff departure rate (12.34% for SCS compared
with 8.48% for overall group).
Of all other grades, only clerical Grades (AA/AO) have a
higher percentage rate of leavers. These are the grades which
have seen the most change in type of work through automation of
tasks and also tend to be the grade levels with the least established
career.
The rate of SCS leaving as a result of early departure/release
schemes has increased steadily each year, from 2.4% in 2006-07 to
5.4% in 2008-09. The only other grade groupings where there has
also been a year-on-year increase is at AA/AO. Over the same three-year
period the rate of resignations within the SCS has fluctuated
from 3.1% in 2006-07, up to 3.8% in 2007-08, and down to 1% in
2008-09.
Retirement rate at SCS more than trebled between 06/07 and
07/08 (from 3 to 10) and in 2008-09 remained static
at around 2.5% of the SCS population size.
SCS departures from mainline "tax professional"
business areas have accounted for 28.5% of all SCS departures
in 2006-07, 20% in 2007-08 and 31.5% in 2008-09.
SUMMARY OF DEPARTURES AS A % OF STAFF IN POST IN EACH
CATEGORY:
|
| Leavers | SCS
| G6 | G7
| FS | SO
| HO | O
| AO | AA
| Total |
|
| 06/07 | 10.15%
| 12.58% | 8.93%
| 5.29% | 8.23%
| 6.40% | 5.86%
| 11.41% | 23.56%
| 10.92% |
| 07/08 | 14.03%
| 7.06% | 6.00%
| 7.12% | 5.58%
| 6.00% | 4.93%
| 9.93% | 16.73%
| 8.81% |
| 08/09 | 12.34%
| 6.12% | 4.89%
| 7.81% | 5.27%
| 5.73% | 5.22%
| 9.87% | 15.37%
| 8.48% |
|
6. Q244: MARK TODD
How HMRC Value for Money commitments relate to each other.
There are three distinctive and separate HMRC initiatives
mentioned in sections 4.4 and 4.5 of the 2009 Value
for Money Update, published April 2009 (HM Treasury's website).
These are:
— new enhanced online services for Self assessment,
PAYE, VAT and Corporation Tax to encourage online filing;
— steps to rationalise and develop a more strategically
located estate to better meet customer service and operational
requirements; and
— the simplification and consolidation of back office
functions and activities.
All of these initiatives will deliver lasting efficiencies
and other benefits. Processes, which were examined as part of
the NAO's 2008 review of the HMRC's Departmental Transformation
Programme, are in place to ensure that these efficiencies and
benefits are all measured and reported separately. There is therefore
no overlap or double counting in the reporting of these benefits.
7. Q264: NICK AINGER
The numbers of bankruptcy petitions sought by HMRC year on
year.
The figures of HMRC Petitions filed in the UK are as follows:
|
| Bankruptcy Petitions filed*
| Winding up Petitions filed
|
|
| 2006-07 | 10,982
| 6,954 |
| 2007-08 | 8,616
| 6,100 |
| 2008-09 | 8,784
| 4,397 |
| 2009-10 (to Sept) | 3,999
| 2,056 |
|
| * In Scotland these are Sequestration Petitions
|
Mr Ainger also requested assurance that the department is
keeping its policy on supporting Voluntary Arrangements under
review. A copy of the HMRC published guidance is attached at Annex
2.
8. Q253: MARK TODD
The relationship with Mapeley with regard to office reductions
and the Department's flexibility under the STEPS Contract.
Under the terms of the STEPS Contract, Mapeley are responsible
for the negotiation of rent, lease renewal, the disposal of surplus
space, and other property related transactions.
In exchange for receipt of an annual facility price, Mapeley
are responsible for ensuring that the Department's ongoing accommodation
needs are met, at least until such time as HMRC has vacated, following
appropriate service of notice. Facility specific vacation notices
can be served by HMRC without direct reference to the underlying
lease position.
HMRC's occupation of facilities is governed by STEPS leases
and/or virtual assignments and each facility has a contractual
designation of Core, Flexible or Intermediate. The ability of
the Department to vacate any or all of these facilities during
the life of the contract at nil cost was/is constrained as follows:
Core
Approximately 71% of the estate (969,000m2) had this designation
at STEPS Contract award. The department had no vacation allowances
for the first three years of the contract, but in each of years
4-18, HMRC was and is permitted to vacate 15,000m2 per annum
without a penalty payment to Mapeley. Any unused allowances roll
forward into subsequent years to become the Aggregate Core Allowance
and can be used at any time upon 12 months notice. Any underlying
leases which continue remain the direct responsibility of Mapeley
under the STEPS Contract risk transfer arrangements, which include
ongoing costs (eg rent and vacant space rates) and liabilities
(eg repairing covenants and dilapidations).
In each of the years 4-18 the department has a Further
Core allowance of 15,000m2 per annum, and can vacate on 12 months
notice subject to, and upon payment of, overhead compensation
only. Despite the payment of compensation, Mapeley continue to
have direct responsibility for any underlying leases including
costs and liabilities.
Flexible
Approximately 13% of the estate (175,000m2) had this designation
at STEPS Contract award. In year 1 HMRC could vacate 2,500m2,
in each of years 2-5 5,000m2, and in each of years 6—15 15,000m2.
Within these allowances and contract provisions, HMRC can exercise
its vacation rights upon 12 months notice.
As with Core, any unused allowances are rolled forward into
the following contract years and vacation is without penalty.
Intermediate
Approximately 16% of the estate (212,000m2) had this designation
at STEPS Contract award. There are no vacation allowances as such,
for Intermediate facilities, but each facility was given a Transition
Date which determines flexibility. The Transition Dates are specific
to each Intermediate facility and the Department has the right
to vacate on the Transition Date at no penalty, providing that
at least 13 months notice has been given and contract provisions
satisfied. Once the Transition Date has passed, the Department
can issue a minimum of 12 months notice to vacate two years
after the Transition Date or at any time thereafter, also without
penalty payment to Mapeley.
Qualifying Change
If at any time HMRC wishes to vacate properties in addition
to the allowances and in any given year, then HMRC would have
to issue a minimum of 12 months Qualifying Change notice
and meet Mapeley's "Change in Costs". These costs might
reasonably include ongoing rent, rates and LSC, and marketing/sub
letting etc.
In making use of its allowances, HMRC is seeking to work
as strategically as possible with Mapeley, while making use of
the value for money flexibility which the Department has available.
November 2008
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