Inland Revenue 42
17 March 1998
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EASIER ACCESS TO THE INLAND REVENUE
The Chancellor has today announced new measures that open the
way for faster and easier communication with the Inland
Revenue for taxpayers and employers. Making it easier for
employers to exchange information with the Inland Revenue will
cut down on time consuming paperwork and leave them more time
to devote to their own business.
The measures will allow the Inland Revenue to offer a new
service to taxpayers by opening a Call Centre in Scotland
later this year. This experimental centre will test the
demand for doing business by phone. The aim is to see whether
Call Centres can deliver better, more flexible customer
service and reduce taxpayers' costs by providing a quicker and
easier alternative to doing business on paper.
The measures also mean that employers around the country will
from April 1998 have the option of sending information about
employees' benefits and expenses to the Inland Revenue in
electronic form rather than on paper. This follows a
successful pilot scheme in 1997.
A second pilot begun in October 1997 allows employers
electronically to send the Inland Revenue details of employees
starting or leaving their employment. The Inland Revenue can
send employers details of PAYE codes by the same means. If
successful this too can be extended to benefit all employers
who wish to update their communications with the Inland
Revenue.
DETAILS
1. From August 1998 the Inland Revenue will be able to
accept claims by individuals to income tax allowances by phone
or other electronic means, in specified circumstances. This
is in addition to the telephone helplines which already
provide advice to taxpayers. A new clause to facilitate this
will be included in the Finance Bill.
2. This makes it possible for the Inland Revenue to set up
an experimental call centre at East Kilbride which will be
able to transact business by phone. The new Centre will be
able to handle calls about their tax affairs from employees
and pensioners of businesses based in Scotland, a total of
about two million people. The Centre will come into operation
in stages between late summer 1998 and early 1999. The last
stage will integrate the Inland Revenue part of the Employers
Helpline.
3. More information about the Call Centre, including details
of claims which can be made and the security procedures which
will be used to protect taxpayers and the Inland Revenue, will
be published later this year before the Call Centre opens.
4. In future, if employers wish to transmit information
electronically the Inland Revenue will be able to rely on it
to the same extent as on versions received on paper or
magnetic tape. A separate new clause will be included in the
Finance Bill to allow the making of relevant regulations.
These Regulations will be published in draft shortly to allow
time for consultation before the new clause is considered by
Parliament.
5. The clause makes it possible for a pilot exercise carried
out in 1997 involving about 100 volunteer employers submitting
expenses and benefits information by magnetic media of their
choice (e.g. diskettes) to be extended nationally from April
1998. The clause also supports the operation of the second
pilot exercise involving employers sending their employee
starting and leaving details by Electronic Data Interchange
and receiving coding details by the same means. This method
improves the speed and accuracy with which this information
can be exchanged and processed leading to benefits for
employers and the Inland Revenue.
NOTES FOR EDITORS
The pilots for exchange of information between employers and
the Inland Revenue have been welcomed by employers as a step
towards more efficient communications. Any employer wishing
to send expenses and benefits information electronically or to
take part in the second pilot described above should get in
touch with:
INLAND REVENUE PRESS OFFICE