Inland revenue staff should receive better training to deal with self-assessment.

That is one of the damning conclusions of a report published today by ACCA - the Association of Chartered Certified Accountants.

The report is based on a survey of 280 accountancy firms in Britain which responded to a questionnaire about the effectiveness of the new system.

Most of them - about 71 per cent - said they had spent between ten and 30 per cent more time on clients' tax affairs because of Inland Revenue errors.

Joan Simonds, press spokesman for ACCA, said: "The Inland Revenue managed to prepare everyone for self-assessment except themselves. There was a lot of pre-publicity with Hector, the cartoon bowler hatted taxman character leading the getting-to-know-it campaign. Now, I'm afraid, Hector has a lot to answer for."

Many accountancy firms claimed that the Inland Revenue wasted time and money by billing taxpayers for tiny sums - about 65 per cent of chartered certified accountants had clients who received tax demands for less than £1.

One respondent cited a married couple who were business partners. She received a tax refund of 40p. He was charged 30p. One client received a repayment of 1p; another received a demand for £1,300 one week and a demand for £1,200 the following week.

Other common mistakes: two tax returns issued to the same person (74 per cent); delays in processing returns (73 per cent); demands issued where no tax is due (57 per cent) and returns sent to people with no taxable income (23 per cent). The Inland Revenue errors were described as "worrying" by Mavis Sargent, chairman of the ACCA taxation committee.

She said: "Ordinary taxpayers are expected to work the system to file on time. Yet experienced Revenue staff clearly do not understand the system. Our survey also reveals that the Revenue sent out penalty notices to people who had filed or paid on time."

The report, which comes as the latest 1998/99 self-assessment forms have been plopping on to doormats all over Britain, suggest that apart from better training, the system could be improved by:

Making forms and paperwork much clearer and "user friendly."

Sending copies of returns, statements of account and other documents to the taxpayer's nominated agent

Employing more staff and processing returns much more quickly

Not being over-reliant on computers, thereby not accepting any information which does not agree with what is on screen.

Double checking forms and other correspondence sent out by the Inland Revenue for errors such as demands for 40p

Interpreting regulations consistently across different tax offices

Accepting responsibility by Revenue staff for errors rather than blame the computer.

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