With the deadline looming for the return of self-assessment tax forms, accountants say they have identified several faults in the new system and are asking for the deadline to be extended.

The Institute of Chartered Accountants, which represents over 100,000 professionals, is critical of staff training and the way the system has been advertised.

Taxes just got more complicated

More than a third of the nine million taxpayers affected by the new system have not yet filed their returns.

Most people will continue to pay their tax through PAYE or other deduction arrangements as before.

The penalties are stiff. The Inland Revenue will levy an automatic fine of £100 on late filers as well as charging interest on any tax paid late. There will be an extra surcharge on sums still outstanding at the end of February.

Too silly to be useful?

In a letter to The Times newspaper, the ICA said that practical problems have thwarted the first year of self-assessment and caused a "significant delay" in tax returns being completed.

The ICA particularly condemned the Inland Revenue advertising campaign, featuring Hector, the cartoon tax inspector, as ineffective.

It also said there was inadequate training for Inland Revenue staff, too steep a learning curve for taxpayers to become familiar with increased responsibilities and a substantial amount of extra paperwork.

If the deadline is not extended, the Inland Revenue stands to make over £100m in automatic fines.
 

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