HMRC’s digital roadmap: What it means for taxpayers
HMRC’s Transformation Roadmap was launched on 21 July, setting out plans to become a digital first organisation by 2030. The plan includes more than 50 measures intended to transform the UK's tax and customs system and provide taxpayers with an incentive to pay their tax on time by simplifying tax administration, whilst strengthening penalties for non-compliance and tax avoidance.
A significant part of HMRC’s roadmap is digitalisation and improving the use of taxpayer’s data to help promote compliance, such as, for example, pre-populating tax returns and increasing HMRC ‘digital nudges’ to taxpayers. Major investment will be required by the Government to achieve its objectives and goals, which is ultimately to close the tax gap.
Key measures underway this tax year
Some initiatives are already in motion and expected to be delivered in the current tax year, including:
- An extension of the SMS confirmation service to cover Self Assessment appeals, complaint cases and some PAYE services.
- Improvements to the Self Assessment registration service and simplifying the exit process for individuals who no longer need to file a Self Assessment tax return.
- An expansion of the voice biometrics pilot to make it easier for customer verification when calling HMRC’s helplines.
- A new service for employed parents, who are newly liable for the High Income Child Benefit Charge, to give them the option to pay it directly through their tax code so they don’t need to register for Self Assessment.
- The launch of an enhanced reward scheme for informants which will reward them with compensation linked to a percentage of any tax taken. This will be targeted towards information on serious non‑compliance in large corporates, wealthy individuals, offshore and avoidance schemes.
Further planned initiatives
Other measures and projects which have been announced as part of the roadmap include:
- The digitalisation of the Inheritance Tax service to make submitting returns and paying tax easier and quicker.
- A new service launching to allow agents to digitally submit information which could have an impact on their client’s tax code.
- Providing a Digital Disclosure Service to enable customers and intermediaries to correct mistakes, pay liabilities and penalties for all taxes and duties.
- The introduction of an electronic trade documentation pilot to see how it could improve customs operations.
Additional point: HMRC confirms no MTD for Corporation Tax
After years of speculation, HMRC has confirmed that it will not proceed with Making Tax Digital (MTD) for Corporation Tax. This decision brings long-awaited clarity for businesses, drawing a line under uncertainty about a possible rollout. Companies can now plan with greater confidence, knowing that MTD for Corporation Tax is no longer on the horizon.
HMRC is still looking to modernise its Corporation Tax services, so we do expect some future changes to be made.
We’re here to help
The move toward digitalisation will bring both opportunities and compliance challenges. Whether you’re navigating Self Assessment changes, impacted by new services, or managing complex tax affairs, our team is here to support you every step of the way.
If you’d like to understand how HMRC’s Transformation Roadmap may affect your obligations or how best to prepare, please get in touch with one of our tax specialists using the form below.
