UK Self Assessment System Beset By Problems

by Jason Gorringe, Tax-News.com, London

27 February 2002

Reports released by two of the UK's leading tax bodies have revealed that the self-assessment system for individual taxpayers has been beset by difficulties.

Commenting at the weekend on Inland Revenue figures released on Friday, the Chartered Institute of Taxation (CIOT) expressed disbelief that one in ten taxpayers failed to complete their tax returns on time, and called on the tax authority to address the 'complexity, poor communication and perception of tax' which have contributed to the difficulties faced by self assessed taxpayers.

CIOT President, John Whiting elaborated on the Institute's findings: 'The fact that some 10% of the Inland Revenue's customers could not comply with their basic responsibilities is telling,' he explained, adding that: 'We think that the time has come for proper research into the reasons for so many people failing to meet their responsibilities.'

Meanwhile, the ICAEW revealed that the UK tax authority is itself struggling to fulfil its obligations. According to Richard Shooter, Chairman of the ICAEW, delays of up to 19 weeks before correspondence is looked at, and early closures of tax offices throughout the country have been reported, both of which are thought to be due to staffing shortages.

Recommended