Tax returns work may be subject to outsourcing, according to HM Revenue and Customs (HMRC) proposals.
Processing tax documents may become the responsibility of workers overseas, potentially in India, according to reports.
Capgemini, the company that currently handles the IT for the self-assessment tax returns and pay-as-you-earn forms of some 30 million people, is rumoured to be considering outsourcing as a means of saving as much as £200 million a year.
The firm also has access to National Insurance contribution details.
This comes as the British Council was last week reported to be thinking about outsourcing jobs to India.
Responding to the claims, a spokesperson for HMRC 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.
"HMRC is constantly looking at how it can provide better value for money to the taxpayer."
According to the BBC, cyber criminals have take to stealing people's passwords in order to submit fraudulent tax claims on the HMRC website in order to claim tax refunds.
