22-07-2025
HMRC sets out long-term vision in new Transformation Roadmap
His Majesty's Revenue and Customs (HMRC) published its plan to become a digital-first tax and customs authority by 2030.
The Transformation Roadmap outlines how it aims to achieve its objectives, with increased automation, and new and improved digital services designed to ensure a 'right first time' level in its service offerings.
As per the Departmental Efficiency Plans, the Government has invested around £7bn ($9.45bn) per year over the SR25 period that will establish critical foundations for HMRC digitisation. HMRC also has aims to become more productive by delivering a further £773m of efficiencies by 2028-29 through actioning three priorities: to improve day to day performance; close the tax gap; and drive reform and digital modernisation of the tax and customs system.
HMRC priorities
To elaborate, HMRC is to deliver a more digital 'self-serve' option with a minimum of 90% of interactions undertaken digitally by 2029-30, an increase from its current 76% benchmark, to expand the range and type of online services it provides – mainly through the HMRC app, to automate tax where possible and provide targeted support for those who need it.
The second priority is to close the tax gap. According to the official statistics from the Measuring Tax Gaps 2025 report, it is estimated that 5.3% of total theoretical tax liabilities, or £46.8bn in absolute terms, was unpaid in 2023-24. HMRC collected £829bn in 2023-24, representing 94.7% of all tax due, and closing this tax gap is a key strategic priority for HMRC to increase this percentage.
Finally, HMRC plans to drive reform and digitisation by 2030 through modernising its IT infrastructure, replacing the long outdated legacy systems with innovative technology and AI, simplifying the legislative and administrative framework, and sharing data and collaborating cross-government.
The department also seeks to upskill employees to use AI effectively; evidently with more than 80,000 digital, data and technology courses completed, of which more than 11,000 were AI-focused.
VOA to be merged
There is also a structural integration objective which will see the Valuation Office Agency (VOA) merged into HMRC. This integration seeks to strengthen the ministerial accountability and is expected to deliver between 5 to 10% of additional savings in VOA administrative costs by 2028-29.
The plan is an ambitious one to say the least. However, we are confident the above vision can be achieved with robust governance. This, though, must be driven primarily through creating great working relationships with suppliers to ensure a smooth and streamlined digital transformation process takes place.
This should also be backed up with intentional requirements gathering and mapping of the department's enterprise architecture to further increase the probability of the department implementing the right technologies that connect seamlessly and efficiently, thereby reducing the risk of paying twice for the 'same but different'.
"HMRC sets out long-term vision in new Transformation Roadmap" was originally created and published by Verdict, a GlobalData owned brand.
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