They have agreed to a restructuring of their outsourcing contract with IT services provider Aspire, which was signed in 2003-04 and has now been extended to 2017.
HMRC chief information officer Deepak Singh said that the relationship between HMRC and Aspire had 'gone from strength to strength over the past three years as we have seen significant improvements in service quality and delivery capability'.
He added: 'The restructuring of the Aspire contract balances the need for HMRC to meet its commitments to cost reductions under the 2007 Comprehensive Spending Review, without compromising our joint drive to become a world-class IT function'.