Self-assessment tax returns and other sensitive information could be processed in India, it has been claimed. HM Revenue & Customs' IT work for PAYE and self-assessment is already outsourced to technology group Capgemini. According to Computer Weekly, Capgemini, along with Fujitsu, is considering sending tax processing abroad, possibly to India. The magazine cites an HMRC internal memo claiming the companies were looking at 'the potential offshoring of some future work, possibly to the sub-continent'. The memo adds: 'HMRC has asked Capgemini to draw up proposals outlining how they could contribute to the demands for better value.' A report on the plans is due next month. The government's current policy is for tax records to go overseas only in an emergency. But HMRC denied the claim. A spokesman said: 'The contract does not permit IT services to be delivered from outside of the UK and we currently have no plans to change this.' Capgemini has been expanding its operations in India. A spokesman said: 'Capgemini is continually looking at how to ensure ongoing value for money for HMRC. That work is currently going on so we cannot comment in detail.'