Online HMRC tax tool crashes on first day An online tax calculator that allows people to work out how much income tax and national insurance they pay and how the government spends it has failed to cope with demand on its first day. HM Revenue & Customs said the system crashed after struggling to cope with high demand after its launch on Monday. "Well over 400,000 people have accessed our online calculator resulting in a much slower service than we would like and for which we apologise," said a spokesman for HMRC. A full service is being restored and the mobile app is unaffected. The calculator, on the HMRC website, is part of a plan to improve the transparency of government spending. Taxpayers will eventually receive a statement telling them how much they have contributed to different government departments. Taxpayers need only enter their weekly, monthly or annual earnings into the calculator or app to see exactly how much tax they pay. The launch comes as research shows more than half of taxpayers do not know the total paid each year, which suggests many people find the tax system remote and confusing, HMRC said. Just 26 per cent of taxpayers are as thorough in checking how much tax they pay as they are when checking transactions on bank statements, HMRC added. David Gauke, exchequer secretary to the Treasury, said the calculator was "a big step towards a more transparent, 21st century system." While accountants generally welcomed the calculator, some expressed concern about the lack of detail. Katharine Arthur, tax partner at MHA MacIntyre Hudson, said: "Whilst useful as a sense-check, it is limited in scope and therefore does not give the full picture." The problem, she said, is that it only takes income tax and NI contributions into account and does not include indirect taxes, such as VAT or capital gains tax. Richard Mannion, national tax director at Smith & Williamson said the theory behind the calculator is that taxpayers will be more inclined to pay their taxes if they are able to see the link to the various services that the state provides. But he added that it remains to be seen whether that is borne out in practice. "This is small first step is welcome, but much more work is required on a wide series of fronts if the UK really is to achieve tax transparency and individuals feel engaged with the tax system," he said.