Global Daily Tax News, HMRC Announces Initiatives To Modernize Tax Administration, (Jul 28, 2025)

The UK tax agency, HM Revenue and Customs, has announced a new PAYE service, which is intended to make the tax system simpler for about 35 million workers liable to tax on a pay-as-you-earn basis.

The service is being launched as part of the agency's ...

The UK tax agency, HM Revenue and Customs, has announced a new PAYE service, which is intended to make the tax system simpler for about 35 million workers liable to tax on a pay-as-you-earn basis.

The service is being launched as part of the agency's ambition to digitalize 90 percent of its services. More than 50 initiatives to deliver on this goal were announced by HMRC alongside the launch of the service.

HMRC said: "The new online service for all PAYE taxpayers will make it simpler and easier to check and update their income, allowances, reliefs, and expenses, and will be available via their Personal Tax Account or through the HMRC app."

HMRC has said it will invest in the development of AI solutions, which will automate the provision of call summaries following taxpayers' calls with HMRC advisers and caseworkers. AI will also be used to support HMRC staff when answering taxpayers' queries.

New digital assistants will be developed, and AI will be used to help verify the authenticity of documents filed with the agency.

HMRC has also said it will work with developers to create a set of principles that will set out HMRC's expectations of how third parties use AI in software where it interacts with the department and the tax administration system. HMRC said: "These principles will give developers the confidence to introduce AI functionality into their products in the UK and minimize the risk of those products introducing error or non-compliance."

HMRC also confirmed that work is underway to deliver some of the measures set out in the Transformation Roadmap this tax year, including:

Extending the rollout of the SMS confirmation service to Self Assessment appeals, complaint cases, and some PAYE services;
Improving Self Assessment registration service and streamlining the exit process for those customers who no longer need to file a Self Assessment tax return;
Expanding the rollout of the voice biometrics pilot to make customer verification easier when calling HMRC's helplines;
A new service to give employed parents, who are newly liable for the High Income Child Benefit Charge, the choice to pay it directly through their tax code without needing to register for Self Assessment;
Launching an enhanced reward scheme for informants, targeting information on serious non-compliance in large corporates, wealthy individuals, offshore and avoidance schemes. The new scheme will reward informants with compensation linked to a percentage of any tax collected.

Further measures and projects HMRC has committed to deliver as part of the roadmap include:

Digitalizing the Inheritance Tax service to provide a modern, easy-to-use system;
Launching a new service to allow agents to digitally submit information that may impact their client's tax code;
Delivering a Digital Disclosure Service to allow customers and intermediaries to correct mistakes, pay liabilities, and penalties for all taxes and duties;
Introducing an electronic trade documentation pilot to see how it could improve customs operations; and
Progressing the Verifiable Credentials pilot with US Customs and Border Protection to test the use of new internationally interoperable digital credentials and identity standards.

Global Daily Tax News, HMRC Announces Initiatives To Modernize Tax Administration, (Jul 28, 2025)

The UK tax agency, HM Revenue and Customs, has announced a new PAYE service, which is intended to make the tax system simpler for about 35 million workers liable to tax on a pay-as-you-earn basis.

The service is being launched as part of the agency's ...

The UK tax agency, HM Revenue and Customs, has announced a new PAYE service, which is intended to make the tax system simpler for about 35 million workers liable to tax on a pay-as-you-earn basis.

New digital assistants will be developed, and AI will be used to help verify the authenticity of documents filed with the agency.

HMRC also confirmed that work is underway to deliver some of the measures set out in the Transformation Roadmap this tax year, including:

Extending the rollout of the SMS confirmation service to Self Assessment appeals, complaint cases, and some PAYE services;
Improving Self Assessment registration service and streamlining the exit process for those customers who no longer need to file a Self Assessment tax return;
Expanding the rollout of the voice biometrics pilot to make customer verification easier when calling HMRC's helplines;
A new service to give employed parents, who are newly liable for the High Income Child Benefit Charge, the choice to pay it directly through their tax code without needing to register for Self Assessment;
Launching an enhanced reward scheme for informants, targeting information on serious non-compliance in large corporates, wealthy individuals, offshore and avoidance schemes. The new scheme will reward informants with compensation linked to a percentage of any tax collected.

Further measures and projects HMRC has committed to deliver as part of the roadmap include:

Digitalizing the Inheritance Tax service to provide a modern, easy-to-use system;
Launching a new service to allow agents to digitally submit information that may impact their client's tax code;
Delivering a Digital Disclosure Service to allow customers and intermediaries to correct mistakes, pay liabilities, and penalties for all taxes and duties;
Introducing an electronic trade documentation pilot to see how it could improve customs operations; and
Progressing the Verifiable Credentials pilot with US Customs and Border Protection to test the use of new internationally interoperable digital credentials and identity standards.