Tax chiefs are doing well so far at slashing running costs but face a serious challenge to cut deeper without harming customer relations, a watchdog has said.
A report by the National Audit Office (NAO) warned the extra burden of benefit reforms and a related new income tax computer system could derail the efficiency drive.
HM Revenue & Customs achieved savings of £296 million in 2011/12, the NAO said, almost one-fifth above target.
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