§ Mr. ShersbyTo ask the Chancellor of the Exchequer what changes have been made by the Inland Revenue in the proposed method of computerising pay-as-you-earn following recent changes in taxation or related matters; whether the original plans are still expected to achieve the cost/benefits anticipated; and what is the expenditure of public funds involved.
§ Mr. Norman Lamont[holding answer 25 January 1989]: The Inland Revenue's computer system for PAYE was designed in such a way as to be able to handle changes of the kind that have been made in the personal tax system with the minimum of adaptation. The computer system will, in particular, make it possible to introduce independent taxation in 1990 after some necessary systems and re-progamming work. The existing PAYE and schedule D computerisation project is still expected to produce staff savings of some 6,800, of which some 5,800 will have been secured by April 1989 and the bulk of the remainder by April 1990. The estimated total cost of developing and installing the system is about £340 million in 1987 prices. The system is already producing estimated savings of over £15 million in the current financial year and this figure is expected to be more than doubled in 1989–90.
§ Mr. ShersbyTo ask the Chancellor of the Exchequer what progress has been made on the computerisation of pay-as-you-earn by the Inland Revenue; what is the starting date for phase two relating to schedule D and corporation tax; what delays have been experienced; and what has been the cost in relation to staff time and consultants' fees.
790Wtwo bases—expenditure on fixed assets, and the conventional national accounts measure of gross domestic fixed capital information (GDFCF). GDFCF is defined as expenditure on fixed assets minus sales of fixed assets. Constant price estimates of expenditure on fixed assets are not readily available.
§ Mr. Norman Lamont[holding answer 25 January 1989]The computerisation of PAYE was completed as planned in October 1988 with the conversion of centre I at East Kilbride to the new on-line system. The computerisation of schedule D assessing is already operating over most of the country and is on schedule for completion in Scotland by April 1989. The precise timetable for introducing the new system for corporation tax is dependent on the new computerised collection and accounting system, phased implementation of which is planned to begin in 1990. Staff time associated with system development and implementation of the PAYE and schedule D projects amounted to some 6,000 man years and around £24 million at 1987 prices in consultants fees.