UK Tax Authorities Shut Down E-Filing System For Upgrade

Jason Gorringe, Tax-news.com, London

18 August 2000

Hard on the heels of the shocking revelation that the British Inland Revenue is laboriously re-entering electronically filed self-assessment tax returns into antiquated computers which are not compatible with its own Internet software comes a sudden close-down of the self-entry system.

Announcing the need for an upgrade and improvement, the Revenue shut down the service from 8 am Thursday 17th August until 5pm on Sunday 20 August, saying however that it might recommence sooner than that. Luckily for the the Revenue it can afford such luxuries, not having any shareholders to account to: a commercial service with paying customers which plans an upgrade does it at 4 o'clock in the morning, of course, and has it out of the way before breakfast.

Other recent examples of the Revenue's problems with these new-fangled computers include the loss of over 200 orders for stationery entered via its online ordering system, and the 'misfiling' of several million taxpayer account files.

Perhaps what's needed is a dose of 'unfair' tax competition. Why doesn't the Government return to tried and tested methods of tax farming? Sir Richard Branson could emulate his Camelot adventure by starting up an alternative income tax collection system, with the profits going to charity. It sounds as if a 5% improvement in collections should be feasible, which would mean an extra £15bn a year for the country, 10% profits at £1.5bn for charity, and a peerage for Sir Richard.

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