The Inland Revenue may have wasted millions of pounds on adverts, according to The Association of Chartered Certified Accountants (ACCA).

Just five per cent of accountants in the district have used the Revenue's new internet tax filing system, which is backed by the Go on, Go on, Go online TV advertising campaign featuring comedy actress Pauline McGlynn.

ACCA says only eight out of nearly 200 accountants surveyed said they had filed their return over the internet. Five said the service was good, the other three said it was not user friendly.

ACCA's Self Assessment Survey 2002 also revealed that 98 per cent of accountants hadexperienced problems due to Inland Revenue system failures or errors.

A massive 80 per cent said they had to spend extra time on clients' returns because of those failures.

Nearly half, 46 per cent, had to write off the extra costs of rectifying the problems because they felt unable to charge them to clients.

Chas Roy-Chowdhury, ACCA's head of taxation, said: "Given that the major complaint of our members was that they or their clients had suffered lengthy delays with the Inland Revenue processing returns, e-filing should have been the answer to their problems.

"Instead, it seems that very few people are using it and it is not a resounding success among those who do. It is a great shame because the service has great potential."