The Expansion Of Online Filing Of Tax Returns

HMRC's programme to increase online filing of tax returns has made significant progress. 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. HMRC 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.

Value Added Tax (VAT) and Corporation Tax raised around £120 billion in revenue in 2005-06. Some 1.8 million businesses are registered for VAT and 1.8 million companies registered to file Company Tax returns, which cover their liability for Corporation Tax. This report examines the performance of HM Revenue & Customs in securing and processing VAT and Company Tax returns from businesses which should submit them. It covers: getting the returns in on time; efficiency in dealing with the returns; customer service and the compliance burden on businesses making returns. Over the last three years the number of Company Tax returns filed on time has remained broadly stable at 77 to 79 per cent and VAT return compliance rate has stabilised at 85 per cent. The Department does not have readily available information on the total number of Company Tax returns outstanding from all previous years. It also does not know the potential tax liability arising from all missing returns. At least £1.5 billion of tax is in doubt from late and non-filed VAT and Company Tax returns. The level and the way in which penalties are applied for late filing for the two tax returns has not proved effective in further improving compliance. The report finds online filing of returns could improve efficiency, and welcomes reduction in staff costs and improvements in customer service. The NAO make a number of recommendations, which may be implemented quickly and at low cost, aimed at yielding efficiency savings, reduce tax at risk, and improve the Department's progress towards its targets.

The Government has not in general measured the benefits delivered by its two central internet services Directgov and Business.gov, and the infrastructure service Government Gateway, which together cost some £90 million a year, according to a report today by the National Audit Office. Government departments and other public bodies use Directgov, Business.gov and Gateway to provide information to the public and to support a range of government online services. It is crucial that the Government Digital Service (GDS), established in March 2011 to implement a new strategy to deliver all government information services digitally, builds in the right mechanisms to achieve value for money as it plans the future of digital shared infrastructure and services. Today's report does conclude, however, that it is likely that Directgov, Business.gov and Gateway have delivered some cost savings to the public bodies which use them, through the reuse of common infrastructure. The public and businesses using the services have also benefited. Directgov (providing government information for the public) and Business.gov (a family of four services, one for each of the four nations of the UK, providing information for businesses) have enabled citizens and businesses to access information in a more organised way. Even though financial benefits are not clear, performance has been managed and most targets have been met. Since 2006, 1,526 government websites have been closed. Determining how successful the Government has been in closing websites has proved difficult, however, because the baseline numbers were based on an estimate and targets have changed over time. At the start, the Government was unsure how many sites it had and not all bodies have complied with the policy to close sites.

Few developments have had broader consequences for the public sector than the introduction of the Internet and digital technology. In this book, Darrell West discusses how new technology is altering governmental performance, the political process, and democracy itself by improving government responsiveness and increasing information available to citizens. Using multiple methods--case studies, content analysis of over 17,000 government Web sites, public and bureaucrat opinion survey data, an e-mail responsiveness test, budget data, and aggregate analysis--the author presents the most comprehensive study of electronic government ever undertaken. Among other topics, he looks at how much change has taken place in the public sector, what determines the speed and breadth of e-government adoption, and what the consequences of digital technology are for the public sector. Written in a clear and analytical manner, this book outlines the variety of factors that have restricted the ability of policy makers to make effective use of new technology. Although digital government offers the potential for revolutionary change, social, political, and economic forces constrain the scope of transformation and prevent government officials from realizing the full benefits of interactive technology.