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Inland Revenue

Volume 401: debated on Tuesday 18 March 2003

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To ask the Chancellor of the Exchequer how much the Inland Revenue has spent on its internet tax return system since its inception; what the estimated (a) manning and (b) set—up costs were; what estimate he has made of the percentage of tax payers that will use the system; and if he will make a statement. [102507]

The Inland Revenue has spent a total of £34.5 million on its internet service for Self Assessment since it's inception. This includes the full range of costs, including the costs of IT Infrastructure, Development and staff costs as well as other associated costs such as postage and marketing.

(a) The estimated costs are as follows:

  • April 2000-April 2001: £1,056,000
  • April 2001-April 2002: £1,588,000
  • April 2002-April 2003: £2,065,000

(b) As my answer of 19 July 2001, Official Report, column 382W, set out, the estimated cost of implementing the Internet service for Self Assessment for years one and two was just under £10 million.

The Inland Revenue has estimated that 25 per cent. of taxpayers will file electronically by 2005–06.