UK Government Will Compel Citizens To E-File For Taxes

by Justin Gorringe, Tax-News.com, London

13 May 2002

Now industrious commentators have finished reading the UK Treasury's 2002 Finance Bill, which will take up its annual slot in the Guinness Book of Records for the longest and worst-drafted piece of finance legislation ever, they have spotted a clause which will make it compulsory for UK businesses to file their tax returns electronically.

It's logical for the Government to do this, says electronic news service theregister.co.uk, seeing as how they have totally failed to convince people to file electronically out of choice: 39,500 used it for tax year 1999-2000, against a target of 315,000, and as of 4th January just over 50,000 had filed for 2000-2001, which didn't look hopeful for the target of 200,000.

Since this is over-regulated, nanny state Britain we're talking about, the Bill proposes a fine of UK£3,000 for businesses who don't file their tax returns electronically by the deadline (2006 for larger firms and 2010 for smaller ones). Still, as the Treasury helpfully points out, if you have difficulty with filing from your office, you can always use an Internet cafe or a library. Why not a pub, though? Spoilsports.

Under the Government's joined-up electronic initiatives, the Inland Revenue is supposed to have all its services online by the end of 2005, and has a target of 50% e-filing take-up by that point. But a National Audit Office report published earlier this year said this target, based on progress so far and experience elsewhere, is unlikely to be achieved. 660 businesses had made enquiries about electronic filing, and a mere 49 had taken it up.

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