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Inland Revenue and EDS: The highs and lows

HM Inland Revenue’s decision to break its 10-year outsourcing relationship with EDS and Accenture for a Cap Gemini Ernst & Young-led consortium in a £3bn, 10-year contract shocked the IT world

HM Inland Revenue’s decision to break its 10-year outsourcing relationship with EDS and Accenture for a Cap Gemini Ernst & Young-led consortium in a £3bn, 10-year contract shocked the IT world.

Computer Weekly has charted the highs and lows of the Inland Revenue’s relationships with EDS and the progress of the unique competition devised over the past two years to help the taxman overcome the risks of supplier lock-in.

December 2003
EDS loses Inland Revenue contract – US outsourcer EDS has lost its 10-year IT services contract with the Inland Revenue, which has selected Cap Gemini Ernst & Young as the preferred supplier for the Aspire contract to modernise tax and national insurance systems.

November 2003
Faulty IT systems contributed to £2bn tax credits loss at Inland Revenue – The Inland Revenue has lost up to £2bn in overpaid tax credits and the new IT systems that should help rectify the problems are not working properly, according to a National Audit Office report.

July 2003
Government urged to seek tax credit compensation from EDS – A committee of MPs has urged the government to demand compensation from its IT supplier EDS after hundreds of thousands of people did not receive their tax credits on time.

April 2003
Revenue pays bidders to try for EDS contract – Officials at the Inland Revenue have confirmed that the department is to meet some of the costs of companies that bid against EDS and Accenture for Aspire, the UK's largest public-private partnership technology contract. 

October 2002
Inland Revenue & EDS: Divorce Impossible? – It used to be said that only two things in life are certain: death and taxes. Inland Revenue seems to have made that three, by including EDS. We investigate the unlikely prospect of the Inland Revenue’s IT contract going to anyone else.

February 2001
£22m overcharge from tax glitch – The Inland Revenue is sitting on £22m of overpaid taxes as a result of its inability to reconcile data between its national insurance PAYE computer systems. 

October 2000
Inland Revenue spikes one million tax records – The government has approved an Inland Revenue move to clear one million unresolved tax records from its systems.

July 2000
Online self-assessment is shelved for this year –  EDS, the Inland Revenue's IT outsourcer, has abandoned its efforts to produce downloadable online income tax self-assessment software for the current tax year.

April 2000
Cracks appear in Revenue’s flagship outsourcing deal – A report for the National Audit Office suggests the Inland Revenue’s deal with EDS is less than perfect.

February 2000
Stakeholder pension plans signal more Nirs2 problems – Government plans to introduce stakeholder pensions next year face uncertainty, partly because of the complexity of IT systems to support the change.

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