HC Deb 15 January 2004 vol 416 cc864-6W
Norman Lamb

To ask the Chancellor of the Exchequer if he will make a statement on the investigation by the Inland Revenue and the e-Envoy into the breaches of confidentiality relating to self-assessment tax returns filed via the internet. [147634]

Dawn Primarolo

SA Online, the Inland Revenue tax return software was temporarily withdrawn on 27 May 2002 following reports from some customers that they had seen information relating to another person. The actual internet service for self assessment remained available to users of alternative tax return software.

The Inland Revenue acted quickly to safeguard taxpayer information. They immediately withdrew the service and called in Qinetiq, an independent security company, as well as experts from the e-Envoy's office.

After an extensive investigation Qinetiq and the experts from the Office of e-Envoy agreed that the Inland Revenue had identified the root cause of the problem; and implemented the necessary changes to ensure it does not occur again.

There has been no repeat of this incident.

Key findings were shared with the Office of E-envoy and other Government Departments.

Norman Lamb

To ask the Chancellor of the Exchequer if he will make a statement on the studies by the Inland Revenue into introducing new methods of payment of self-assessment liabilities. [147635]

Dawn Primarolo

IR is currently carrying out studies aimed at expanding the payment methods that are already on offer.Direct Debit—For customers who are interested in making regular payments on account in advance of their SA tax becoming due IR offers a limited service called Budget Payment Plan. A current study is looking to develop a national service that will extend the use of the Inland Revenue's Direct Debit systems. Debit card—A current study is looking at the feasibility of providing, a National system to enable all IR Local Recovery Offices to accept Debit card payments. Credit cards—Work on payment by credit card is on-going but there are many factors to consider before offering the facility to pay self-assessment debts by Credit card.

Norman Lamb

To ask the Chancellor of the Exchequer if he will make a statement on current delays in processing self-assessment tax returns received by the Inland Revenue. [147636]

Dawn Primarolo

The Inland Revenue have met their targets for capturing the information included in self-assessment tax returns every year since self assessment was introduced and fully expect to do so again this year.

Norman Lamb

To ask the Chancellor of the Exchequer what percentage of taxpayers filed their self-assessment tax returns by the due date in 2003; and if he will make a statement. [147645]

Dawn Primarolo

90.5 per cent. of self-assessment taxpayers filed their 2001–02 self assessment tax returns by the due date (31 January 2003).

Norman Lamb

To ask the Chancellor of the Exchequer if he will change the inquiry window regarding self-assessment tax returns from running for 12 months from 31 January to 12 months from the date a return is received; and if he will make a statement. [147646]

Dawn Primarolo

There are no plans to change the self-assessment inquiry window to run for 12 months from the date a return is received.

Norman Lamb

To ask the Chancellor of the Exchequer how many self-assessment tax returns have remained outstanding from each year since the system was introduced; and if he will make a statement. [147647]

Dawn Primarolo

Out of approximately nine million self-assessment returns issued annually, the number outstanding for each tax year as at the end of November 2003 was as shown in the following table:

Return year Returns outstanding
1997 36,065
1998 55,357
1999 83,954
2000 136,984
2001 219,088
2002 389,939

Norman Lamb

To ask the Chancellor of the Exchequer how many taxpayers have filed their self-assessment tax returns via the internet in each year since this service became available; whether he expects that the 50 per cent. target for internet filing of self-assessment tax returns will be met by 2005; and if he will make a statement. [147648]

Dawn Primarolo

The Inland Revenue received the following number of returns electronically in the following years2000–01: The number of returns received electronically by the Inland Revenue was 336,127. 296,837 of these were received via the Electronic Lodgement Service and 39,290 via the Internet Service. 2001–02: The number of returns received electronically by the Inland Revenue was 419,236. 343,009 of these were received via the Electronic Lodgement Service and 76,287 via the internet service. 2002–03: The number of tax returns received electronically by the Inland Revenue was 705,690. 370,051 of these were received via the Electronic Lodgement Service and 335,639 via the Internet service. 2003–04: The number of tax returns received electronically by the Inland Revenue at 9 January 2004 was 649,338. 209,515 of these were received via the Electronic Lodgement Service and 439,823 via the Internet service.

The target for electronic filing of self-assessment tax returns is that 25 per cent. of all self-assessment returns will be received electronically by 5 April 2006. Electronically means by the Internet service or the Electronic Lodgement Service. The Inland Revenue is on course to meet this target.