Opposition MPs have opposed government plans to force companies to
file tax returns electronically by 2010.
Tories and Liberal Democrats objected to a provision in the Finance
Bill that would have required employers to file payroll returns and
information over the Internet by 2010 or pay an agent to do it for
them. Failure to comply would incur a fixed penalty fine of up to
£3,000.
Shadow chief secretary to the treasury John Bercow said that while
professional bodies believed in an electronic solution in the long
term, the timescale proposed was unrealistic and problems with
current computer systems needed to be resolved first.
Liberal Democrat treasury spokesman John Burnett said, "I do not
believe that it is in the interests of the Inland Revenue, let
alone the taxpayers that e-filing should be mandatory; it should be
permissive."
Paymaster general Dawn Primarolo said, "Electronic filing of PAYE
for the overwhelming majority of people by 2010 is not an
unrealistic target."
The Government won a vote on the issue by 18 votes to nine after
Primarolo conceded the need to make provision in the regulations
for those organisations such as the Bretheren which have a
religious objections to using computers.