The Low Incomes Tax Reform Group (LITRG) is calling for urgent action to help the ‘digital left-behinds’ it has identified, warning that these individuals may find it hard to remain tax compliant once HMRC’s Making Tax Digital (MTD) initiative starts in 2018
In a new report, the group assessed the current provisions of services such as GOV.UK, GOV.UK Verify and HMRC’s digital services against the four recognised barriers that often stop people from going online: access, skills, motivation and trust.
Its research found 67% of respondents to a LITRG survey had used GOV.UK for at least one purpose, but just 31% of respondents had a tablet and only 25% had a smartphone. Three-quarters (77%) of respondents were aged over 60, and only half of that group had internet access. Of those aged over 80, only 25% had a digital device.
Based on its findings, LITRG is making a services of recommendations to HMRC and wider government, including the proposal that the use of digital services should be voluntary and not mandatory, and that the benefits of going online should be more widely publicised.
It also wants to see ‘reasonable and necessary adjustments’ made for those unable to go online, with alternatives that are as good as the digital equivalents must be easily accessible.
LITGR says that in order to instil trust and motivation, HMRC needs to improve the way the department communicates and shares information about the security measures in place. This will help reassure people that their information is secure and the quality of any pre-populated data is accurate.
The group argues that the current inconsistency in the look and feel of digital services hinders people’s understanding of what they should look for and how to differentiate between plausible fake and genuine looking websites, leaving them susceptible to fraud.
Anthony Thomas, chairman of LITRG, said: ‘While it is tempting to assume that cheaper broadband and increased use of smartphones and tablets mean that everyone can use online services, the stark reality as outlined in our report is that there are still millions of people who find it difficult to access the internet or lack the basic literacy, numeracy and digital skills to do so.
‘Those who do not routinely go online struggle to see the benefits it can bring and others do not want to because they do not feel it is safe.
‘As more and more services move online, such as the ability to make new tax credit claims online as announced in the Autumn Statement, we urge HMRC and wider government to look at its digital drive very seriously in light of our report and address real-life issues faced by a significant number of people in the UK, often the most vulnerable in society.’
Thomas also cautioned the government that digital capability can be a ‘moveable feast’, saying that ‘even those who are digitally savvy now may, because of changes in life circumstances such as age, bereavement or illness, in the future no longer be able to use digital services.’
LITRG’s report, Digital services for taxpayers – effectiveness and engagement is here.