Dating of p46 2016
In addition, 2,500 staff would be redeployed to "front-line" activities.
Estimates suggested this may save around £300 million in staff costs, out of a total annual budget of £4 billion.
The merger of the Inland Revenue and HM Customs & Excise was announced by then Chancellor of the Exchequer Gordon Brown in the Budget on 17 March 2004.
The name for the new department and its first executive chairman, David Varney, were announced on .
The merger was described by the Financial Times on 9 July 2004, as "mating the C&E terrier with the IR retriever".
For an interim period officers of HMRC are empowered to use existing Inland Revenue powers in relation to matters within the remit of the old Inland Revenue (such as income tax, stamp duty and tax credits) and existing Customs powers in relation to matters within the remit of the old Customs & Excise (such as value added tax and excise duties).
As part of the Spending Review on 12 July 2004, Gordon Brown estimated that 12,500 jobs would be lost as result of the merger by March 2008, around 14% of the combined headcount of Customs (then around 23,000) and Inland Revenue (then around 68,000).However, a major review of the powers required by HMRC was announced at the time of the 2004 Pre-Budget Report on 9 December 2004, covering the suitability of existing powers, new powers that might be required, and consolidating the existing compliance regimes for surcharges, interest, penalties and appeal, which may lead to a single, consolidated enforcement regime for all UK taxes, and a consultation document was published after the 2005 Budget on 24 March 2005.Legislation to introduce new information and inspection powers was included in Finance Act 2008 (Schedule 36).HMRC has two overarching Public Service Agreement targets for the period 2008–2011: HMRC is a law enforcement agency which has a strong cadre of Criminal Investigators (c.2000) responsible for investigating Serious Organised Fiscal Crime.