Written question asked by Mike Hancock (Liberal Democrat) on Thursday, 6 March 2003, in the House of Commons. It was due for an answer on Tuesday, 18 March 2003. It was answered by Baroness Primarolo (Labour) on Tuesday, 18 March 2003 on behalf of the Treasury.

Treasury

Question: To ask Mr 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. - Inc figures and ref to 372 c382W, 19 July 2001.

Answer: Mr. Hancock: 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] Dawn Primarolo: 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.

Secondary information

Type: Written question
Reference: 102507; 401 c676-7W
Session: 2002-03
Subjects: Costs ICT Expenditure Income tax Inland Revenue Internet Staff Take-up Self-assessment
Contains statistics: Yes
Link: View this Written question on www.publications.parliament.uk