Big jump in number of e-filed tax returns
Statistics for this year’s self assessment tax return filing bonanza have been released. Almost 9 million tax returns for the tax year 2008/09 had been filed by 31 January 2010. Of these, 66% (compared with 43% last year) were e-filed as opposed to being filed on paper. Over 3 million tax returns arrived in January.
Just over two thirds of e-filed returns used third party software so there is heavy reliance on HMRC’s own free filing software product.
E-filing is not compulsory for personal returns so it is interesting to note that people are moving to it voluntarily. This supports the Tax Faculty’s contention that a reliable service where people can see that the benefits outweigh the cost, will attract users given time.