Public Services > Devolved

New Welsh revenue body picks Kainos to help build digital tax system

David Bicknell Published 04 August 2017

Vendor picked for estimated £1.5m-£2m project with Welsh Revenue Authority to help develop its tax collection and management systems


The Welsh Revenue Authority has picked Kainos to help design, build and implement a digital system to support its operation.

From April 2018, Wales will have its own taxes to replace UK Stamp Duty Land Tax and Landfill Tax. In readiness for this, the Tax Collection and Management (Wales) Act 2016 provides powers to establish devolved tax arrangements. The first of the devolved taxes are Land Transaction Tax (LTT), replacing UK Stamp Duty Land Tax (SDLT) and Landfill Disposals Tax (LDT), replacing UK Landfill Tax (LfT).

The Welsh government is currently in the process of setting up the Authority to manage and collect devolved taxes from April 2018. It will be the first non-ministerial government department created by the Welsh administration and over the next three years it expects to collect more than £1bn in tax revenues.

Kainos will be responsible for building a digital tax collection and management system for LTT and LDT using an underlying scalable Microsoft Azure Platform as a Service (PaaS) solution.  Kainos is expected to adopt an Agile delivery approach aligned with the current Welsh Government’s digital strategy. The Welsh government already uses the Microsoft Azure platform and as the WRA will be a non-ministerial department of the government, prospective suppliers were told it would be likely and preferable that Azure would be used.

According to responses to questions asked by suppliers on the opportunity, Kainos supported the Discovery phase for the contract. The budget range for the contract was estimated at between £1.5m-2m. The expected contract length is 18 months, with potential scope to extend to two years.

Last month it emerged that Kainos appeared to have secured a contract worth up to £4m from the Passport Office to supply a team that will work on the design, build and implementation of a digital service supporting British passport holders.

Commenting on the Welsh Revenue Authority win, Russell Sloan, divisional director at Kainos said, “Digitisation of tax collection and management for LTT and LDT will go a long way towards improving the ease of collecting tax revenue in Wales. It is a true testament to the power of digital technology and will be an example to other public sector bodies. We very much look forward to kicking off the project and collaborating with the Welsh Revenue Authority to develop a new way of working.”




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