HMRC Gives Assurances Over Online Security

by Robert Lee, Tax-News.com, London

29 January 2008

The UK tax authority has dismissed as "completely untrue" reports that its online filing systems are unsafe because certain public figures cannot use the online self-assessment system for security reasons.

In a statement rebutting a number of newspaper and broadcast media reports which surfaced earlier this week, HM Revenue and Customs admitted that a small minority of taxpayers, including Members of Parliament, cannot currently use online services because the additional internal safeguards on their records mean that their taxpayer reference numbers are not recognised on the authentication system.

However HMRC insisted that this has "nothing to do with the security of our online services".

"HMRC online services use the highest levels of encryption generally available and authentication processes similar to online banks," the department stated.

Reports emerged arguing that HMRC effectively used a two-tier system security system for online tax records, giving public figures extra protection, after Tory MP Andrew Robathan challenged the department for refusing to allow him to file his tax return over the internet.

When Robathan confronted government ministers on the issue, Jane Kennedy, a Treasury minister, responded that: "There are categories of individual for whom security is a higher priority. Not just MPs - there are several categories - and HMRC does not have the facilities for them to file online."

Three million taxpayers currently use the online tax return system to file self-assessment forms, but there are plans to make the filing of returns online mandatory, and Robathan is calling for these plans to be deferred until assurances are given by HMRC that the tax records of all taxpayers can be stored online safely.

HMRC has stated that it is "continuing to explore ways to extend online filing to all taxpayers".

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