“HMRC’s focus on making life easier for agents is very welcome”

How accountants feel about HMRC’s transformation roadmap.

HMRC’s transformation roadmap sets out over 50 measures, initiatives and projects playing a part in the government’s strategy to modernise the UK tax system.

It outlines how HMRC will meet key objectives such as improving departmental performance and customer service, closing the tax gap and reforming and futureproofing the tax system.

Ultimately, the aim is for HMRC to become a digital-first organisation by 2030, with at least 90% of taxpayer interactions being digital, through the use of AI capabilities, automation and improved digital functionality.

Currently, 76% of customer interactions are digital, but a new PAYE service introduced as part of the roadmap is intended to make it ‘simpler and easier’ for taxpayers to check, review and control their tax status and accounts.

Some of the other major changes and measures announced in the roadmap include:

• leveraging AI capabilities for internal HMRC advisors and caseworkers 

• leveraging AI-powered assistants to provide services and support for HMRC customers 

• increasing investment in IT infrastructure, data-driven systems and new platforms 

• introducing automated invoicing and AI-powered ID verification systems 

• mandating and modernising tax adviser registration from April 2026. 

To fund the digital transformation, £500 million has been allocated over a four-year period which will help recruit thousands of additional HMRC staff as well as introduce, implement and streamline each of the projects as set out in the roadmap. 

In addition, HMRC has announced it will no longer introduce Making Tax Digital for Corporation Tax, looking instead at an ‘alternative approach’ to corporation tax.    

So what’s the reaction from accountants and bookkeepers?

HMRC’s plans are commendable, but experienced officers are needed to oversee technology

Robert Marchant, Partner, National Head of Tax, Crowe

HMRC has a wealth of data about organisations and individuals, and using a data-led approach to target area of perceived tax avoidance is welcomed. In my experience though, the application of technology still needs oversight by a human and I would hope that there will still be experienced officers reviewing the data and the actions that HMRC then proposes to take. 

Overall, the plans are commendable. More officers, reducing the tax gap, reducing the tax debt, improved customer service, improved turnaround times, measures to support small businesses, all amongst a number of announcements. It feels like we have been here before, but time will tell. 

Verdict: HMRC’s plans are commendable but experienced officers are needed to oversee technology.

HMRC’s roadmap would massively reduce turnaround times

Paislei Godley, Director, Prime Accountants Group

The proposed roadmap would be fantastic if HMRC can deliver it, though I feel the five-year timeframe is optimistic.  

Many things we deal with as agents are paper-based or done by phone call. We’re often asked to write a letter if we’re not able to get the support we need over the phone. It’s archaic compared to much of the service sector. You can wait months before a letter is actioned. 

Therefore, giving agents the ability to deal with these kinds of enquiries digitally would be a fantastic move in the right direction. 

If HMRC can stick to this roadmap, it would massively reduce turnaround times for simple tasks. For example, getting someone out of self-assessment means we have to write to HMRC and wait weeks for a reply – and that’s if we hear back from them at all. This change gives us the power to do this electronically and it would be almost instant. 

This is also a step in the right direction towards closing the tax gap and ensuring people are paying the right amount of tax. It’s interesting to note it also includes the launch of an enhanced rewards scheme for people reporting serious non-compliance. 

There are concerns around security and fraud, for example using voice recognition to verify individals.  This process will lean heavily on AI, so its ability to spot fakes will be crucial. But when you consider HMRC doesn’t currently use two factor authentication (2FA) on agent accounts, there is a security risk here. 

Verdict: HMRC’s roadmap will massively reduce turnaround times and is a step in the right direction towards closing the tax gap. 

Modernisation and simplification is welcome, while over-reliance on AI is a concern 

Ellis Harris Boulter MAAT, Founder and Director, FieCo Accountancy

HMRC is ready to enter its technology era. The Transformation Roadmap puts it on a journey to deliver fast-paced change. The plan is certainly ambitious, and addresses some of HMRC’s big problems. Its futuristic AI approach and raft of exciting plans to make tax synonymous with everyday life is almost enough to make you forget about years of delays and false starts with Making Tax Digital. What could go wrong? 

A new online service for PAYE customers to allow self-service, alongside development of an easier reporting system for customers with simple tax affairs can only be a good thing. Who knows, telling your aunt to ring HMRC because her tax code’s wrong could be a thing of the past.  

The possibility of improving VAT registration and sending codes by email could be promising given the dire state of VAT registration now, but this must be carefully balanced against risk of fraud. Finally, HMRC’s focus on making life easier for agents by modernising and streamlining registration and three-way communication is very welcome.  

However, the idea of HMRC implementing AI is concerning, and brings flashbacks to the CEST IR35 tool, with HMRC promising to uphold the result of it before calling it “irrelevant” in a subsequent tribunal. Therefore, HMRC should stay alert to potential unintended consequences of implementing AI. 

 Overall, I’d prefer to see HMRC focus more on consistently delivering its core role. 

Verdict: The focus on modernisation and simplification is welcome but over reliance on AI-powered technology is a concern.

Would you like to contribute to future articles like this one? If so, please get in touch with Annie Makoff-Clark at [email protected].

Annie Makoff is a freelance journalist and editor.