By Clare Gascoigne

Taxpayers will be able to use debit cards to pay tax bills over the phone, in a range of measures designed to simplify the self-assessment system.

The moves include clearer forms and statements, and softening the standard letter received if the Inland Revenue decides to conduct an investigation.

Up to 400,000 people will be taken out of the self-assessment system from April, because of the raising of the monetary threshold for pay-as-you-earn taxpayers with minor sources of income.

There will also be a new web site to help people work out if they can reclaim tax paid automatically on bank and building society deposit accounts.

RELATED ARTICLES
ALCOHOL/TOBACCO: Smugglers raise a glass
WOMEN: VAT on sanitary protection to be cut to 5%
Tax breaks encourage employee share ownership