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Online Filing Costs Four Times More In The UK

by Jason Gorringe, Tax-News.com, London

19 August 2002

The Liberal Democrat party revealed last week that the UK's online filing system costs almost four times more to administer than the original postal tax return system.

Speaking on Thursday, Edward Davey, Shadow Chief Secretary to the Treasury for the Lib Dems quipped:

'Only New Labour could make a cost cutting exercise more expensive than the original system.'

He went on to explain that: 'The Inland Revenue's online tax return has had few takers. 80,000 people are using the system which cost £17 million to implement over three years. That means that the cost is £212 per person. This is nearly four times higher compared to the £60 per person cost of the existing system.'

Mr Davey concluded by accusing the government of 'letting taxpayers down' by 'failing to deliver a successful project'.

The online filing project was forced to shut down earlier this year when it emerged that several taxpayers had been able to access the details of others filing online, due to a technical fault.

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