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You have to include all the overheads, like office space, pensions, payroll taxes (does HMRC pay tax to itself? hmm), administration costs, travel expenses etc.

You have to include all the overheads, like office space, pensions, payroll taxes (does HMRC pay tax to itself? hmm), administration costs, travel expenses etc. I have been told in the past that these things roughly double (rule of thumb) the cost of an employee over their salary costs. I don't know if that's true, but that's what I was told. But yes you're right. I exaggerated when I said most of the collected revenue would be spent on overheads. It's just some of it. If the true overheads are more like 24-25 million, then you get a bit more than 100 million recovered, which is about 0.1% of one years deficit. Profitable but not going to shift the needle in any noticeable way.

Retric 11y ago
Overhead really depends on the type of work. But, HMRC is not forced to be located in high cost areas which really brings down costs. Anyway, you should get into the right ballpark just looking at there budget. From: https://en.wikipedia.org/wiki/HM_Revenue_and_Customs https://en.wikipedia.org/wiki/HM_Revenue_and_Customs £4.09bn budget, 56,000[1] FTE = ~£73,000 per FTE including all overhead except possibly unfunded pension liabilities.
- sievebrain 11y ago
  That's a good way to calculate it, fair enough. I concede the point.