HMRC has unveiled an ambitious Transformation Roadmap comprising over 50 digital initiatives aimed at revolutionising how taxpayers and agents interact with the tax system.
Published on 21 July 2025, the comprehensive plan outlines HMRC’s commitment to becoming a truly digital first organisation by 2029/30.
Digital-first strategy takes shape
HMRC aims for 90% of all interactions to be conducted digitally within five years, up from the current 76%. This dramatic shift will centre around enhanced self-service options and more efficient processes for both taxpayers and their representatives.
A standout development is the new online service for PAYE taxpayers launching in 2025/26. This platform will enable employees to easily check and update their income details, allowances and expenses through their personal tax account or the redesigned HMRC app.
The mobile app and online accounts are set for major upgrades, featuring AI-powered assistants, voice biometrics and personalised experiences. A simplified, more secure login process will make these platforms the primary gateway for taxpayer interactions with HMRC.
Enhanced support for tax advisors
Recognising that agent services have lagged behind taxpayer offerings, HMRC has committed to significant improvements. From April 2026, mandatory tax advisor registration will be modernised with streamlined processes, whilst digital identity verification will be enhanced.
Key developments include:
- Secure three-way communication between HMRC, clients and advisors by end of 2028
- Digital withdrawal capabilities for self-assessment clients
- Enhanced income record viewer with expanded information
- New digital submission tools for tax code adjustments
- Real-time tracking of client submissions and repayments
Tackling the £46.8bn tax gap
With the tax gap reaching £46.8bn in 2023/24 (5.3% of total liabilities), HMRC is intensifying compliance efforts. Small businesses now represent 60% of the gap, up from 48% in 2019/20, prompting targeted interventions through digitalisation and enhanced third-party data usage.
Mandatory advisor registration forms part of HMRC’s strategy to raise standards in the tax advice market, alongside strengthened powers to tackle non-compliant practitioners.
System modernisation programme
Beyond digital services, HMRC plans extensive infrastructure overhauls, including replacing legacy corporation tax systems and investing heavily in AI capabilities. Notably, Making Tax Digital will not extend to corporation tax, with HMRC developing alternative approaches suited to diverse business needs.
The transformation promises regular, iterative improvements delivered through enhanced stakeholder consultation, marking a significant departure from previous large-scale programme approaches.
How we can help
Our team is here to help you make sense of the new requirements and find the right software solutions for your business. From choosing MTD-compatible systems to setting up digital record-keeping processes, we’ll ensure you’re ready for whatever HMRC throws at you next.
Get in touch today for further information or guidance.
