Inland Revenue 44
17 March 1998
______________________________________________________________
GOOD NEWS FOR EMPLOYERS -
CONTRIBUTIONS AGENCY TEAMS UP WITH INLAND REVENUE
The Chancellor announced today that the Contributions Agency
is to transfer from the Department of Social Security to
Inland Revenue in April 1999.
DETAILS
1. Bringing the Contributions Agency and Inland Revenue
together in a single organisation will promote greater
alignment of tax and National Insurance Contributions (NICs),
which is one of the Government's long term aims.
2. The move has many advantages. It will:
- reduce the burden on businesses and people so they can
sort out taxes and contributions through one organisation
- help the two Departments to share experience, knowledge and
skills in combating avoidance, making better use of resources
and helping fairness in taxation
- enable them to combine their efforts on customer service
- give business and other representative bodies one focus for
discussion of improved legislation, procedures and guidance
- and so, over time, make it easier to achieve a gradual
alignment of the tax and NICs rules.
3. The transfer is a natural extension of the Joint Working
Programme between the two Departments that was launched in
1995.
NOTES FOR EDITORS
1. The Contributions Agency, responsible for the operation of
the National Insurance system, is currently an Executive
Agency of the Department of Social Security.
2. All 8,000 Contributions Agency staff will join the Inland
Revenue. Most CA staff work at the DSS site at Longbenton
near Newcastle, but around 3,500 of them work in field
offices in 120 locations around Great Britain.
3. Inland Revenue are responsible for administering income
tax, corporation tax, petroleum revenue tax, inheritance tax
and stamp duties. It currently employs some 50,000 staff
throughout the country and includes 24 operational and
service "executive offices" and one "executive agency" the
Valuation Office Agency.
4. For the next twelve months Inland Revenue and CA
operations will continue much as they are now, until the
necessary legislation is passed.
5. The transfer of Contributions Agency to Inland Revenue is
aimed at better service and better compliance. But as a
result of combining the two organisations, we expect some
efficiencies by removing duplication of effort.
6. We need to determine the exact numbers, but at this stage
we think as a direct result of the transfer there could be a
loss of around 200 jobs countrywide in the combined
organisation. We will be able to manage these staff
reductions mainly through natural wastage ( for example,
retirements and resignations).
7. Newcastle will remain an important site for government
employment. The recently announced project to re-develop the
Longbenton site will go ahead as planned, as will the
development of the new National Recording system. Inland
Revenue see Longbenton as one of their strategic sites for the
future in the new combined organisation. These arrangements
secure its long term future.
INLAND REVENUE PRESS OFFICE