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Tolley Tax Intelligence
 

Taxman makes computers compulsory

No-one enjoys filling in their tax returns. But, like going to the dentist, it has to be done.

The taxman now wants to force everyone in business to use a computer. So it won’t be possible simply to fill in your tax return and send it off in the post. You’ll have to understand how computers work, have access to a machine and reliable broadband, and be physically able to use it.

This is no problem for most younger people. They were brought up with the Internet, talk to their friends online, play games, and even read novels using computers. But it is different for the elderly and disabled. And it is a problem for those in remote areas, with no broadband coverage.

The most recent statistics show that 42% of those aged between 65 and 74 have never used the Internet, and this rises to 76% for those over 75. Over four million disabled people have never used a computer. And large swathes of Britain still do not have broadband – particularly in Wales and Scotland.

What will happen to these people’s businesses if they cannot fill in a paper tax return and post it to HMRC? They’ll have to ask a friend to help – which means sharing their private information with someone else. Or they’ll have to pay a tax adviser – although many cannot afford this.

Bizarrely, the only people who automatically fall outside these draconian requirements are those whose religion forbids the use of computers, such as some Plymouth Brethren. They can continue to post their tax returns.

Why can’t this exception be provided for elderly and disabled people too? Why can’t they continue to post their returns? And what about those with no access to broadband? Why should it only be a religious minority who are protected from this burdensome and worrying new change?

If you think the elderly and disabled, and those without broadband access, should have the right to continue to post their tax returns, make your voice heard. Write to Keith Wear, Room BP7201, Benton Park View, Newcastle Upon Tyne NE98 1ZZ (or telephone 0191 2250379, or email keith.wear@hmrc.gsi.gov.uk), and tell him to keep the postal option.

Send comments also to John Nawbatt, HMRC, Business Tax SME Programme, 7th Floor, Bush House (SW Wing), The Strand, London WC2B 4RD (or telephone 0207 438 4494, or e-mail john.nawbatt@hmrc.gsi.gov.uk). John is collecting views on forcing everyone who is VAT registered to use computers, a plan which is likely to come into force as early as 2012.

Ironically, these two consultations are only available online – so those most affected can’t get a copy of the proposals. So if you know someone in business who can’t use computers, and wants to go on posting their tax returns, ask them to write to these addresses as soon as possible – and to copy their letters to their local MPs.

The banks wanted to abolish cheques; now HMRC wants to abolish the post. Cheques were saved by a public campaign – it is not too late to do the same with tax returns.

Anne Redston

Anne is a visiting professor at King’s College, London and a barrister at Temple Tax Chambers

The information contained in this article is intended to provide only a general outline of the subjects covered.  It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice.  The author and the publisher disclaim all responsibility for any loss arising from any action taken or not taken by anyone using the information in this document