Transparency data
HMRC Government Major Project Portfolio data, September 2016
Updated 18 July 2017
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| Project Name | Making Tax Digital for Individuals | Building Our Future Locations Programme | Columbus (formerly Aspire Replacement Programme) | CUSTOMS DECLARATION SERVICES (CDS) Programme | Making Tax Digital for Business | Tax-Free Childcare | |
|---|---|---|---|---|---|---|---|
| Department | HMRC | HMRC | HMRC | HMRC | HMRC | HMRC | Not set |
| IPA Delivery Confidence Assessment (A Delivery Confidence Assessment of the project at a fixed point in time, using a five-point scale, Red – Amber/Red – Amber – Amber/Green – Green; definitions in the MPA Annual Report) | Amber | Amber/Red | Amber/Green | Amber | Amber/Red | Amber | Not set |
| Description / Aims | Delivery of the Making Tax Digital for Individuals Programme is a key building block in HMRC’s transformation. It is the biggest change for individual taxpayers in a generation and is a vital part of moving to multi-channel digital delivery, supporting greater real time working and allowing risk and compliance activity to move upstream. It is the vehicle through which much of the Government’s “Making Tax Digital” agenda will be delivered. Ultimately the work of the Programme over this Spending Review period could provide the platform to allow the Personal Tax Account ("PTA") to become the digital front door for Government, opening up a host of opportunities to improve customer experience with Government as a whole through modernised systems and processes supporting the move to real time working and abolish the tax return. | This Programme by 2020-21 will replace HMRCs current 170 offices with 13 new Regional Centres, 5 transitional sites, 4 Specialist Sites and a London Headquarters serving every part of the UK. This will enable HMRC to create modern, adaptable work spaces that will support the digital infrastructure, staff collaboration and development that HMRC requires to modernise.The Programme will support delivery of future efficiency savings through the extended roll out of the ten-year modernisation programme.This Programme also supports the wider Government agenda to transform the Civil Service estate; all of our chosen locations for HMRC Regional Centres align with the siting of Government Hubs. | To manage the safe exit of HMRC's ASPIRE IT contract that ends in June 2017. The Programme's Aims and Objectives are: The Programme aim for the scope reflected in the Business Case is to:• achieve a safe transition from the ASPIRE contract to the new HMRC IT operating and sourcing model, enabling HMRC’s digital and data transformation and deliver the benefits of the new model thereafter.The Programme objectives for the scope reflected in the Business Case are to:• Ensure there is continuity of IT supply to the Department and its customers once the current contractual arrangements through the ASPIRE contracts end in June 2017;• Ensure that new sourcing arrangements provide better value for money, drive out savings compared to current baseline and are market aligned and consistent with Government standards for ICT contracts and IT delivery;• Ensure IT in HMRC is transformed to enable HMRC’s digital and data transformation and to ensure that changes can be made more flexibly and at greater speed through a new target Operating and Commercial Model and re-engineered processes;• Ensure HMRC has the capacity and capability to operate its new IT Operating and Commercial Model on a sustainable basis;• Ensure the transition from ASPIRE contracts to the new Operating Model is as smooth as possible with minimal disruption to service (same or better SLAs) and project delivery (time, cost, quality as agreed for each project) during the transition period. | HMRC is responsible for delivering an end to end declaration processing service for imports to and exports from the UK. The current service delivery system is the Customs Handling of Import and Export Freight service (CHIEF). Each year this business critical service handles c.60 million declarations and collects £34bn revenue, set in a context of an international trade supply chain that is worth £700bn p.a. to the UK economy. This is a business critical declaration processing system handling movements of 3rd country (non-EU) goods. CHIEF operates real time, 24 hours per day, 365 days of the year. The current CHIEF system is more than 23 years old and based on aging Virtual Machine Environment (VME) technology which is becoming difficult to maintain. The service has reached a point where any changes will be both expensive and technically difficult to implement. HMRC are seeking to replace CHIEF with a robust, scalable set of import /export services, capable of delivering this critical function into the future. | Delivering requirements to modernise IT architecture, bring tax reporting closer to the point of transaction, removing the need for customers to complete tax-specific returns and/or provide information HMRC already holds, enhancing digital services for businesses and agents and delivering a better customer experience. | Under TFC the intention is to provide childcare accounts for all eligible children for which the first £8,000 deposited by parents or others is topped up by government by 20p for every 80p deposited, up to a maximum of £2,000 per child per year. The TFC programme will design and implement the TFC scheme. Accountability for TFC is divided between HMRC and HM Treasury (HMT). HMRC are responsible for TFC delivery and for outcomes on customer service such as correct payments and data security. HMT have responsibility for ensuring the scheme delivers its intended policy outcomes and for advising ministers on any further policy changes needed to ensure the outcomes continue to be achieved. HMRC will also deliver, for DfE who are the accountable Department, the functionality to support the enhanced 30 hours free childcare provision for 3 and 4 year olds. | Not set |
| Departmental commentary on actions planned or taken on the IPA RAG rating. | The delivery confidence assessment for the Programme is Amber. This reflects the delivery confidence assessment made by IPA at the July 2016 Programme Validation Review. The Programme uses a suite of Key Performance Indicators across a range of disciplines to assess delivery confidence on a monthly basis. The Programme have taken steps to ensure it has sufficient capacity and capability to deliver its Business Case. | Key Factors in Delivery Confidence Assessment: • The Programme is large with a very challenging schedule involving the creation of 13 regional centres and the migration of 40,000 staff over 5 years. • In September 2016, the Programme Board reviewed a refreshed Strategic Outline Case (SOC), which recommended the re-baselining of cost, schedule and benefits reflecting changes to initial forecasts. The Board provided guidance and a draft of the SOC was considered by HMRC’s Investment Committee in October 2016. • Work is in hand to assess the impact of the revised schedule on business outputs and our people. • Since September a significant amount of risk mitigation and cost reduction work has been undertaken to mitigate major programme risks and to address affordability concerns | The Programme is reporting an overall DCA of Amber for this quarter. This is based on the fact that the Programme has successfully put controls in place and progressed actions to mitigate and reduce the RAG status of Programme risks throughout the quarter. The Chancellor approved the Programme's Business Case in early February 2016 and consequently the Programme was able to sign exit contracts with the main Aspire suppliers on 29th March 2016. The Programme therefore submits a continuing DCA of Amber for the quarter. This is supported by the Programme being externally assessed by Infrastructure & Projects Authority (IPA) in early September 2016 ahead of the Wave 2 insource. The IPA assessment concluded with an Amber/Green rating for Wave 2. Columbus Programme Board has endorsed this latest IPA delivery assessment. | Successful delivery of CDS appears feasible, subject to continued management of key risks and issues. There are mitigating actions in place and we are actively managing these. We are using an agile methodology (scaled Agile framework) to incrementally develop system functionality. This means that CDS will be a more flexible service than CHIEF and will provide greater agility to make system changes. | This RAG status is determined by the Programme Board and reflects a number of the Programme's key performance indicators and constituent projects together with: the overall number and complex dependencies of the constituent parts; challenges in agreeing a design which meets both customer needs and legal requirements effectively; and the scale of the challenge in managing stakeholder reactions and successfully landing the required primary legislation in Finance Bill 2017. | Tax-Free Childcare received approval of the Full Business Case by Chief Secretary to the Treasury (CST) and has successfully launched the Childcare Provider Service. The main driver for the RAG status is the challenging delivery timeline prior to the private beta Trial scheduled for November 2016 | Not set |
| Project - Start Date (Latest approved start date) | 01/04/2016 | 05/01/2016 | 01/01/2014 | 16/10/2013 | 01/04/2016 | 10/09/2013 | Not set |
| Project - End Date (Latest approved end date) | 31/03/2021 | 05/04/2021 | 31/12/2021 | 31/12/2018 | 31/03/2021 | 30/06/2018 | Not set |
| Departmental narrative on schedule, including any deviation from planned schedule (if necessary) | Data not provided | Data not provided | Data not provided | Data not provided | Data not provided | Data not provided | Not set |
| 2016/17 TOTAL Baseline £m (including Non-Government costs) | £51.50 | £310.20 | £894.00 | £36.51 | £48.00 | £65.64 | Not set |
| 2016/17 TOTAL Forecast £m (including Non-Government costs) | £51.50 | £340.70 | £894.00 | £31.43 | £48.00 | £56.78 | Not set |
| 2016/2017 Variance %age | 0% | 10% | 0% | -14% | 0% | -14% | Not set |
| Whole Life Cost TOTAL Baseline £m (including Non-Government costs) | £205.62 | £2,099.30 | £6,310.00 | £117.06 | £227.00 | £356.86 | Not set |
| Departmental narrative on budget/forecast variance for 2016/17 (if variance is more than 5%) | Budget varience less than 5% | At 16/17 Q2, the variance between baseline, which was based on the SR15 bid, and forecast was driven in the main by understated legacy accommodation running costs of some £ 26 m. Since Q2 legacy accommodation running costs have been reviewed in depth to provide much greater confidence in the figures. In addition investment cost assumptions have been refined leading to an improved understanding of underpinning costs and some reductions in investment costs. As a result of this work, the Programme has a much better understanding of costs as it progresses towards approvals. | Budget varience less than 5% | The variance between 2016/17 Baseline and Forecast is due to lower Declaration Processing COTS package costs and a reduced level of resource resulting from the procurement taking longer than planned. | Budget varience less than 5% | The 2016/17 budget of £65.6m is taken from the Tax-Free ChildCare (TFC) Full Business Case (FBC) version 2 approved by HMT & Cabinet Office in March 2016. Forecast spend for 2016/17 is below budget as planned spend on Identity Assurance contingency, Marketing and Assisted Digital is no longer required. | Not set |
| Departmental Narrative on Budgeted Whole Life Costs | In accordance with Cabinet Office Infrastructure and Projects Authority (IPA) Data Guidance and Definitions governing the quarter two of 2016/17, Whole Life Costs (WLC) total baseline is the summation of resource (RDEL), capital (CDEL), and non-government expenditure, for the period covered by the latest HM Treasury Approval Point/Business Case. The resource and capital cost is made up of three constituent categories: ‘One-off Investment in Change’, ‘New Recurring Costs’, and ‘Old Recurring Costs’. | In accordance with Cabinet Office Infrastructure and Projects Authority (IPA) Data Guidance and Definitions governing the quarter two of 2016/17, Whole Life Costs (WLC) total baseline is the summation of resource (RDEL), capital (CDEL), and non-government expenditure, for the period covered by the latest HM Treasury Approval Point/Business Case. The resource and capital cost is made up of three constituent categories: ‘One-off Investment in Change’, ‘New Recurring Costs’, and ‘Old Recurring Costs’. | In accordance with Cabinet Office Infrastructure and Projects Authority (IPA) Data Guidance and Definitions governing the quarter two of 2016/17, Whole Life Costs (WLC) total baseline is the summation of resource (RDEL), capital (CDEL), and non-government expenditure, for the period covered by the latest HM Treasury Approval Point/Business Case. The resource and capital cost is made up of three constituent categories: ‘One-off Investment in Change’, ‘New Recurring Costs’, and ‘Old Recurring Costs’. | In accordance with Cabinet Office Infrastructure and Projects Authority (IPA) Data Guidance and Definitions governing the quarter two of 2016/17, Whole Life Costs (WLC) total baseline is the summation of resource (RDEL), capital (CDEL), and non-government expenditure, for the period covered by the latest HM Treasury Approval Point/Business Case. The resource and capital cost is made up of three constituent categories: ‘One-off Investment in Change’, ‘New Recurring Costs’, and ‘Old Recurring Costs’. | In accordance with Cabinet Office Infrastructure and Projects Authority (IPA) Data Guidance and Definitions governing the quarter two of 2016/17, Whole Life Costs (WLC) total baseline is the summation of resource (RDEL), capital (CDEL), and non-government expenditure, for the period covered by the latest HM Treasury Approval Point/Business Case. The resource and capital cost is made up of three constituent categories: ‘One-off Investment in Change’, ‘New Recurring Costs’, and ‘Old Recurring Costs’. | In accordance with Cabinet Office Infrastructure and Projects Authority (IPA) Data Guidance and Definitions governing the quarter two of 2016/17, Whole Life Costs (WLC) total baseline is the summation of resource (RDEL), capital (CDEL), and non-government expenditure, for the period covered by the latest HM Treasury Approval Point/Business Case. The resource and capital cost is made up of three constituent categories: ‘One-off Investment in Change’, ‘New Recurring Costs’, and ‘Old Recurring Costs’. | Not set |
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| ID Numbers | HMRC_0016_1617-Q2 | HMRC_0015_1617-Q1 | HMRC_0013_1415-Q4 | HMRC_0014_1415-Q4 | HMRC_0017_1617-Q2 | HMRC_0012_1415-Q1 | Not set |
| Annual Report Category | Government Transformation and Service Delivery | Government Transformation and Service Delivery | ICT | ICT | ICT | Government Transformation and Service Delivery | Not set |