Free online filing software ‘important’

30 July 2008

It is important that free online filing software should continue to be made available to small firms, a new poll has found.

The poll was carried out by the Working Together E-Group, the coalition of professional bodies that meets with HM Revenue and Customs (HMRC) to discuss online tax filing issues.

Asked about the future of the online filing system, the Group’s members overwhelmingly favoured retaining the policy of supplying small businesses and unrepresented individual taxpayers with free filing software.

Of the 500 respondents, 87 per cent said that employers with less than 10 employees should continue to receive free software in order to help minimise administrative burdens.

Paul Aplin of the E-Group added: “Some 82 per cent of members responding thought that HMRC should continue to supply free software to unrepresented taxpayers. This is on the basis that if HMRC want to encourage individuals to file online rather than by paper, HMRC should continue to supply a free basic e-filing service.”

When asked their opinions of the current online filing system, the majority of respondents thought there had been no significant improvement in the process despite additional funds devoted to making it more efficient.

Tina Riches of the E-Group, and a technical director of the Chartered Institute of Taxation (CIOT), commented: “At a time when HMRC are investing in improving the online system we were very disappointed to find that 85 per cent of respondents said that the system was worse or no better than last year. Only 15 per cent thought the system had improved – seemingly a marked deterioration since last year when a majority of CIOT members surveyed reported an improvement.”

The CIOT said that the survey results indicated HMRC need to carry out extensive testing before requiring changes to their own and commercial e-filing system software.