Politics · United Kingdom · 1 hr ago
UK Cabinet Office scraps hiring platform, records £7.8m loss
The UK Cabinet Office has closed a central government hiring platform, called the Civil Service Jobs Applicant Tracking System.
The department recorded a £7.8 million loss when it scrapped the system.
It said the closure would let it pursue a new project that better fits the government’s strategy for shared services software.
Some government departments preferred to use recruitment tools in their existing systems, and the Cabinet Office did not assess a reset as early as it could have.
Separately, the department estimates it owes £38.5 million in unpaid contractor tax and National Insurance, including interest; it paid £15 million in February 2026, leaving £23.5 million provisioned at year-end.
HMRC has identified inadequate past processes, and the Cabinet Office disclosed possible penalties of up to £8.9 million, though it considers payment unlikely because penalties may be suspended if conditions are met.
The final tax settlement is still being negotiated.
The UK Cabinet Office scrapped its Civil Service Jobs Applicant Tracking System programme, recording a £7.8 million loss.
The department said the closure would allow a new project better aligned with the Shared Services for Government Strategy.
Its annual report said shared services clusters had raised concerns about the central platform and preferred recruitment functions in their own enterprise systems.
The report also put the department’s estimated unpaid tax and National Insurance liability under IR35 at £38.5 million, including interest.
The Cabinet Office disclosed potential HMRC penalties of up to £8.9 million, but said it considered payment unlikely.
- Who
- The UK Cabinet Office.
- What
- It scrapped a central government recruitment platform, recording a £7.8 million loss. It also disclosed an estimated £38.5 million IR35 liability and potential penalties of up to £8.9 million.
- When
- The department’s annual report covered 2025-26 and was published on 13 October 2026.
- Where
- The United Kingdom.
- Why
- The programme was closed to align with the Shared Services for Government Strategy.
This story does not have two clearly opposing sides.
Some shared services clusters raised concerns about the programme and preferred to use recruitment functions in their own enterprise systems.
The ATS programme was reset, and HMRC concluded that the department’s historic off-payroll processes were inadequate.
The Cabinet Office paid £15 million towards settlement of its IR35 liability.
The Cabinet Office reported the platform’s closure and a £7.8 million loss.
The Register published its report on the Cabinet Office’s annual report.
- ATS programme loss
- £7.8 million
- Estimated IR35 liability
- £38.5 million, including interest
- Paid towards settlement
- £15 million in February 2026
- Remaining IR35 provision
- £23.5 million at year-end
- Potential HMRC penalties
- Up to £8.9 million
What people are saying
align with the Shared Services for Government Strategy
At various points between 2023 and 2025, some shared services clusters raised concerns about the ATS program and stated that they would prefer to use the ATS functionality of their own ERPs over the new central platform.
The lesson for every organization engaging contractors is that claiming to take reasonable care is not the same as being able to demonstrate it.
Sources
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