HMRC Releases Transformation Roadmap

Increased Automation Coming to Tax Services July seems to have been a month of ‘roadmaps.’ In addition to the roadmap for the Employment Rights Bill covered above, HM Revenue & Customs (HMRC) announced its Transformation Roadmap – a plan to modernise the UK’s tax and customs systems by 2030.   HMRC have said that the aim of the Transformation Roadmap is to make the tax administration system more automated, more focused on self-service and better set up to get things right first time. The roadmap includes more than 50 IT projects, services and measures.   Let’s see what some of these include. New PAYE service As part of the Transformation Roadmap, a new online PAYE service will be launched that’s designed to give all UK PAYE taxpayers easier access to their tax affairs. Through their Personal Tax Account or the HMRC app, employees will be able to check and update things like:

• Income details
• Tax codes
• Allowances and reliefs
• Work-related expenses

  For employees, this should mean more visibility and control of their tax. For employers, it could mean fewer questions from staff about their tax codes or deductions – especially if you’re already fielding those awkward “why has my tax changed?” queries.   If you run payroll or support employees with benefits or expenses, it’s a good idea to keep an eye on these updates. Over time, staff might expect you to understand and even guide them through using these services.   Push for 90% Digital by 2030 HMRC is clear that they feel the future is digital. Their goal is for 90% of customer interactions to happen digitally by 2030.   That means less reliance on letters and phone calls, and more emphasis on apps, online forms, and AI-powered assistants. In fact, HMRC believes they can save £50 million a year just by reducing paper correspondence.   Post will still exist, but only for critical correspondence and those who genuinely need it.   AI and Automation Artificial Intelligence (AI) is playing a big role in this transformation. HMRC will use it to:

• Help staff summarise calls and cases
• Improve online guidance with digital assistants
• Spot fraudulent documents using biometric checks
• Develop principles for how third-party software (like payroll or tax apps) should interact with HMRC systems

  It seems there is a growing emphasis on real-time data and compliance. For example, the introduction of a Digital Disclosure Service will allow taxpayers to correct mistakes more easily – but also means HMRC will have better tools to spot issues.   What Else is Coming Soon: A Few Key Projects A few measures that HMRC are planning to rollout in this tax year include:

• SMS confirmations for Self Assessment updates and some PAYE services
• A more streamlined process for registering or exiting Self Assessment
• Voice biometrics to speed up telephone verification
• A new option for higher earners to manage Child Benefit charges through their tax code

  There’s also a focus on tackling offshore tax avoidance, especially among high-net-worth individuals and umbrella companies.   What’s Coming Later? HMRC will be looking at how they can modernise the penalties they charge for late tax payments and will be providing an update on how they plan to do this later in the year. Other measures that are in the pipeline include:

• Digitising the Inheritance Tax service.
• Allowing agents to submit information that affects a tax code digitally.
• An electronic trade documentation pilot looking at how to improve customs operations.

  New legislation is also planned for April 2026 that will make recruitment agencies legally responsible for accounting for PAYE where they use umbrella companies – so if you use workers in such an arrangement that’s going to be worth a closer look.   What Should You Do Now? Here are a few simple steps to consider:

• Encourage employees to activate and explore their Personal Tax Accounts if they have questions about their tax code.
• If you use payroll software, keep an eye on updates from your software provider to make sure your system remains compatible with future HMRC requirements
• Stay informed – we’ll be keeping an eye on the rollout and will continue to share relevant updates.
• Plan ahead for compliance – it looks as though HMRC will be quicker to penalise when things aren’t done right.

  If you’re unsure how these changes might affect your business – or you’d like help reviewing your payroll, compliance processes, or digital readiness – we’re here to support and help you.   To read the Transformation Roadmap in full, see here.