Small business 'should be given free tax software by HMRC'

Date: 30th July 2008

Small businesses and sole traders should be offered free software to help them file their online tax returns, industry experts have said.

Accountants that form the Working Together E-Group regularly meet with HM Revenue & Customs (HMRC) to discuss issues regarding online filing.

The group has now revealed that a recent poll showed that 82 per cent of accountants believed that HMRC should continue to supply free software to unrepresented taxpayers.

In particular, 87 per cent of the accountants said that businesses with less than ten employees should continue to receive free software, as this would minimise the burdens of being an employer and help them file PAYE and national insurance contributions for HMRC.

"If HMRC want to encourage individuals to file online rather than by paper, HMRC should continue to supply a free basic e-filing service," explained Paul Aplin, the chairman of the ICAEW's tax faculty.

The research also revealed that 85 per cent of accountants thought HMRC's e-filing system had got worse in the last year.

Recently, HMRC confirmed that it had corrected a glitch on its online self assessment tax return pages.