Less than one per cent of taxpayers are using the internet to file tax returns despite a scheme to get the Inland Revenue online.

The claim by the Liberal Democrats party's treasury spokesman Matthew Taylor said the Revenue's system involves returns filed by e-mail being printed out and then re-entered manually into the taxmen's computers.

Mr Taylor said: "It is hardly surprising that no one is using the new system when it is so difficult to use."

According to a parliamentary answer given to Mr Taylor in July, just 63,301 of the 8.3 million self-assessment taxpayers had applied to file their returns online.

Self-assessment taxpayers are offered a £10 discount as an incentive to filing returns over the net Mr Taylor said: "The Treasury are offering more than they can deliver, as usual.

"It is ridiculous that tax returns filed over the net have to be manually typed into the Inland Revenue's computers."

www.inlandrevenue.gov.uk