The Channel logo


By | Team Register 22nd November 2005 16:59

EDS coughs up over Tax Credit debacle

Back to work program

EDS is to stump up £71.25m to settle its dispute with Her Majesty’s Revenue & Revenue over the disastrous system the services giant built to support the UK’s Tax Credit system in 2003.

EDS said the settlement, under which it will make an upfront payment and hand over “additional amounts over time”, would not impact its earlier financial guidance for Q4 05 or full year 2006.

The system EDS put in place to support the Tax Credit system was widely regarded as a complete and utter shambles. Poor families were overpaid to the tune of £1bn, only for HMRC to claw the money leaving them in worse financial straits than ever.

At the end of 2003, EDS was forced off the contract, although some fingers were also pointed at the revenue itself.

Still, EDS can console itself with the stacks of contracts it has signed with the likes of the UK’s Department of Work and Pensions, Offender Management Service, and the Ministry of Defence.®

alert Send corrections


Frank Jennings

What do you do? Use manual typwriters or live in a Scottish croft? Our man advises
A rusty petrol pump at an abandoned gas station. Pic by Silvia B. Jakiello via shutterstock

Trevor Pott

Among other things, Active Directory needs an overhaul
Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella


League of gentlemen poster - Tubbs and Edward at the local shop. Copyright BBC
One reselling man tells his tale of woe