Critical tax systems supplied by EDS may not be replaced in time to beat the millennium bug.
The warning came this week from the National Audit Office, which is worried about the timescale for switching over three unidentified Inland Revenue systems, which it describes as "critical to the department's business".
These systems will be replaced in September and November - deadlines which, "leave little room for slippage." The auditors are also concerned that, "any delays could affect some tax revenues."
EDS, which supplies IT to the Inland Revenue under a 10 year outsourcing agreement, said that its tax bug fix was "leading the industry". EDS claims it will complete compliance by June.
Ian Hugo, assistant director of pressure group Taskforce 2000, said: "This is extremely late. The chances are the deadlines will slip."
Public sector users are the slowest to fix the bug, according to Computing's Year 2000 confidence index.
For further stories see 11 February issue of 'Computing'
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