"HMRC’s expansion of online filing has been a
real achievement. The programme is largely complete, to time and
budget, and more than 11 million customers are filing online. It is
an integral part of the Department’s drive to increase
efficiency.
"However, HMRC cannot demonstrate that the
benefits are being maximised. Significant improvement is needed in
its understanding of costs and benefits to inform future
development."
Amyas Morse, head of the National Audit Office, 11
November 2011
HMRC’s programme to increase online filing of
tax returns has made significant progress. A National Audit Office
report today has highlighted the Department’s achievement so far in
increasing take-up rates and doing so on time and within a reduced
budget. HMRC needs a better understanding of the benefits and costs
to customers and how its online filing costs compare to those for
paper returns.
HMRC was set an ambitious timetable to expand
the use of online filing and now more than 11.5 million customers a
year are submitting one or more tax returns online, generating
significant savings. Take-up rates have increased significantly,
particularly after mandatory online filing requirements have come
into force. Nevertheless, take-up rates on some taxes (VAT,
Corporation Tax and Self-Assessment) have been below original
forecasts and HMRC has lowered its forecasts in the light of
take-up achieved so far.
Customers generally recognise the efficiencies
and practical benefits that online filing offers although HMRC has
yet to measure whether the anticipated benefits and costs to
customers are being achieved in practice. Some users have concerns
about the costs and usability of filing VAT and Corporation Tax
returns online, and about delays in getting login details to access
the Self-Assessment online service during peak periods. Levels of
satisfaction with the assistance offered through various helpdesks
also vary.
Online filing is delivering significant
savings to HMRC, an estimated £126 million so far. The 2007
forecast was for savings of £145 million by the end of 2010-11 but
the programme was subsequently rescoped because of
departmental-wide funding pressures. It cannot demonstrate whether
it is maximising benefits as it does not yet fully understand the
relative costs of dealing with paper and online returns or the
costs and benefits of seeking greater take-up.
Publication details:
HC: 1457, 2010-2012
ISBN: 9780102969979