At spring statement 2025, the Government committed to publishing a transformation roadmap setting out the future direction of the tax and customs system. Today, the Government deliver on that commitment.
The HMRC transformation roadmap outlines the Government’s vision for a more efficient, modernised, and automated tax and customs system. This will enable HMRC to collect more of the tax that is due, while enabling taxpayers and businesses to focus more on what matters to them—contributing to the Government’s mission in their plan for change to boost economic growth.
The plans laid out in the roadmap will enable everyday tasks, processes and compliance to happen with less effort. This will happen through simplified policies and procedures, the application of new technologies like artificial intelligence (AI) and the introduction of more digital self-serve options for taxpayers that give them greater control and offer quicker solutions to their queries.
This transformation will also enable HMRC staff to spend more time helping taxpayers who are in vulnerable circumstances, digitally excluded, or have complex tax affairs. It will free up more of their time to support businesses who are seeking greater certainty over their plans for investment and growth.
I have set the Department three clear priorities to drive these changes forward: improving day-today performance and the customer experience; closing the tax gap; and reforming and modernising the tax and customs system. As part of all three priorities, the Government will continue to simplify tax administration to make it easier for taxpayers and their representatives, all while reaffirming HMRC’s charter standards.
HMRC’s transformation roadmap details the actions that HMRC will take to achieve these ministerial priorities and some of the changes that taxpayers and businesses can expect to see. It is informed by insight and feedback from external stakeholders, who will continue to play a key role in supporting and challenging HMRC as it delivers this ambitious package.
Improving day-to-day performance
HMRC’s day-to-day performance depends on the quality of services provided to taxpayers and their agents. These days, most taxpayers want to interact with HMRC digitally, especially for simple tasks. This means HMRC must improve digital services to give taxpayers greater control over their tax affairs and minimise the need for taxpayers to call or write to them.
As such, the roadmap outlines HMRC’s plan for a minimum of 90% of customer interactions to be digital by 2030. HMRC will become digital first, while continuing to support those who need extra help. Taxpayers who are in vulnerable circumstances, digitally excluded, or have complex tax affairs will continue to be able to access support through existing channels, including phonelines.
Closing the tax gap
The Government have funded a significant increase in HMRC’s compliance and debt workforce, including investment for 5,500 new compliance officers and 2,400 debt management officers. Its workforce will have access to improved tools and receive training to identify those at risk of non-compliance and to recover more of the money owed.
For the most stubborn compliance risks, closing the tax gap necessitates changes to process and policy, including digitalisation, use of automation and integration of AI. HMRC will also tackle tax evasion and other offences, increasing the number of annual charging decisions to 600 a year by 2030, with a focus on tackling frauds that are most harmful to taxpayers and the tax and customs system.
Intermediaries such as tax advisers and software providers play a crucial role in administering the tax and customs system, enabling compliance and trust. Taxpayers should have confidence that any intermediary they choose will help them get their tax right, and HMRC will take steps to raise standards in the intermediary market to stop the minority who cause disproportionate harm to the tax system.
Reform and modernisation
Reform and modernisation of HMRC are fundamental to improving day-to-day performance and closing the tax gap. They will ensure HMRC is an agile department, able to adapt to the changing nature of the wider tax and customs system.
To achieve this, HMRC will modernise its IT infra-structure, making use of innovative technology and AI, robust data capabilities—including new legislation to support cross-Government data sharing—and a highly skilled workforce.
HMRC will also modernise the way it delivers change, empowering people throughout the organisation to explore innovative solutions, embedding “test and learn” approaches, and adopting best practice from the private sector.
HMRC is committed to reporting progress against the deliverables in the roadmap, including through its standard reporting. The roadmap includes a list of metrics to demonstrate progress against each of the three priorities. The roadmap will be regularly reviewed and updated as HMRC, in collaboration with external stakeholders, delivers the future of tax and customs administration.
[HCWS868]