HMRC Releases Transformation Roadmap: What Employers and Taxpayers Need to Know

July has been a month of roadmaps. Alongside the Government’s roadmap for the Employment Rights Bill, HM Revenue & Customs (HMRC) has set out its Transformation Roadmap – a major plan to modernise the UK’s tax and customs systems by 2030.

The roadmap outlines more than 50 projects and measures, with the clear aim of making tax administration more digital, more automated, and more efficient. The focus is on helping people get things right first time while reducing reliance on paper and phone services.

A New PAYE Service

A key feature of the roadmap is a new online PAYE service. Through their Personal Tax Account or the HMRC app, employees will be able to:

• Check and update income details

• Review tax codes, allowances, and reliefs

• Submit work-related expenses
  

For employees, this means greater visibility and control of their tax affairs. For employers, it may mean fewer staff queries about tax codes and deductions – a welcome development for payroll teams already answering “why has my tax changed?” questions.

HMRC’s Push for Digital by 2030

HMRC wants 90% of customer interactions to be digital by 2030, moving away from paper correspondence and phone calls. Apps, online forms, and AI-powered assistants will become the norm, with post reserved only for critical cases. This shift alone could save HMRC an estimated £50 million annually.

AI and Automation at the Core

Artificial Intelligence will underpin much of this transformation. HMRC plans to use AI to:

• Summarise calls and cases for staff

• Power digital assistants for improved online guidance

• Detect fraudulent documents through biometrics

• Define standards for how payroll and tax software interacts with HMRC systems
  

This signals a growing emphasis on real-time data, automation, and compliance monitoring. The introduction of a Digital Disclosure Service will make it easier for taxpayers to correct errors, while also giving HMRC better tools to identify issues quickly.

What’s Coming Soon

Within this tax year, HMRC plans to roll out:

• SMS confirmations for Self Assessment and PAYE updates

• A more streamlined process for Self Assessment registration and exit

• Voice biometrics for faster phone verification

• Child Benefit charge management via tax codes for higher earners
  

There will also be a continued focus on tackling offshore tax avoidance and ensuring compliance among umbrella companies.

Looking Ahead

Further measures planned include:

• Digitising the Inheritance Tax service

• Allowing agents to submit tax code information digitally

• Piloting electronic trade documentation for customs improvements

• Modernising late payment penalties
  

Importantly, from April 2026, recruitment agencies will become legally responsible for accounting for PAYE where umbrella companies are used. Businesses using such arrangements should prepare now for this significant shift.

What Employers Should Do Now

To stay ahead of these changes, businesses should:

• Encourage employees to set up and use their Personal Tax Accounts

• Ensure payroll software remains compatible with HMRC updates

• Stay informed on rollout timelines and requirements

• Review compliance processes, as HMRC will have faster tools to spot and penalise mistakes
  

At SJC, Chartered Accountants, we’ll be closely monitoring these developments and supporting businesses as the roadmap unfolds. If you’d like advice on payroll, compliance, or digital readiness, our team is here to help.

To read the HMRC Transformation Roadmap in full, [click here].