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I have been consulted by my payroll team. 

I am told that HMRC require us to export P11d information (which from a tax perspective is about mileage claims and includes staff personal data), and this gets placed on floppy disk (cd's not allowed !)  and sent "via post" to HMRC. As far as can be discerned there is no encryption being used. The HMRC website says that the files must not be "compressed" - whatever that means - and why, since there should never be any issues with lossless compression or encryption as the "original"  file can be duplicated.

Has anyone come across this. I am amazed, in view of history, that HMRC sanction this. I am still trying to get chapter & verse from HMRC but they are rather unresponsive at the moment. I can of course use a traceable courier service if it would place us in breach of our tax obligations to delay the info. , but even that places me in breach of our own policy which is now quite clear : "where possible avoid the use of removable media for the storage or transfer of personal data and where this is not possible use an appropriate level of encryption ". 

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