HMRC’s Transformation Roadmap was published in July 2025 and outlined the government’s vision for a more efficient, modernised and automated tax and customs system. HMRC’s planned activity for 2026 to 2027 includes:
- incremental improvements to the Personal Tax Account;
- delivery of a single, consolidated digital expenses service to allow customers to claim expenses online and upload supporting evidence digitally;
- expanding features available through HMRC’s online PAYE service, including clearer explanations of how untaxed interest affects tax liabilities and improved online information explaining under and overpayments;
- introducing a digital refund service for individuals who have overpaid NIC;
- a new system enabling payments of voluntary Class 2 NIC;
- pre-population of returns with Child Benefit data;
- introducing an improved VAT repayments tracker;
- improvements VAT registration processes;
- a new digital IHT service which will allow executors and representatives to manage and complete IHT cases online, with faster processing, clear guidance and reduced manual intervention and improved compliance;
- undertaking at least 30,000 high street linked interventions, collaborating with other agencies, and dedicating 50% capacity of HMRC’s criminal investigators from the new Small Business Evasion and Enforcement team to tackle high street businesses linked to illegal activity;
- reducing repayment fraud through strengthened identity verifications capabilities;
- using new third-party data to prepopulate ITSA returns by 2028;
- progressing a joint plan with Companies House and the Insolvency Service to tackle those using contrived insolvencies to evade tax and write off debts owed to others;
- developing a Digital Disclosure Service to allow customers and intermediaries to correct mistakes and pay liabilities and penalties for all taxes and duties; and
- publishing an e-invoicing roadmap at Budget 2026 that will set out the milestones to implementation in April 2029.
www.gov.uk/government/publications/hmrc-transformation-roadmap-progress-update-2026