HMRC is stepping into the future with a raft of changes aimed at making things more efficient, more digital, and (hopefully) more straightforward for taxpayers. Here’s a rundown of what’s coming.
🖥️ Going Digital – The Big Picture
As part of the government’s ‘Plan for Change’, HMRC is working to become a digital-first organisation. The goal is to improve value for money, support economic growth and streamline services by embracing new technology. A full ‘HMRC transformation roadmap’ is due this summer, but here’s what we know so far:
🧾 New PAYE Portal Coming April 2025
From April next year, HMRC is launching a brand new PAYE portal designed for employees and pensioners. It’ll be a simpler way for you to:
This is a welcome move toward making PAYE more transparent and user-friendly.
🤖 Customer Service Gets an AI Boost
HMRC is testing the use of generative AI on GOV.UK to help taxpayers find the guidance they need faster. They’re also looking at rolling out voice recognition as a quicker way to get through security when contacting HMRC.
We’ll be keeping an eye on how these tools roll out in practice – and whether they actually improve the experience or just add to the noise!
💰 Tougher Stance on Tax Avoidance and Non-Compliance
HMRC is tightening up its approach to close the ‘tax gap’. Here’s what’s changing:
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New legislation is on the way to crack down harder on tax avoidance schemes.
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More focus on offshore non-compliance by wealthy individuals.
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AI and data analytics will be used to spot hidden funds.
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A consultation is under way to explore stronger powers to deal with tax avoidance scheme promoters.
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Another consultation is exploring how to deal with rogue tax advisers enabling non-compliance.
If you’ve ever been targeted by schemes that seem “too good to be true”, now’s the time to tread carefully and get proper advice. As always, A&C Chartered Accountants stands firmly against any unethical or contrived tax planning.
📞 Reporting Tax Fraud – HMRC Introduces Reward Scheme
Later this year, HMRC plans to introduce a reward scheme to encourage whistleblowers to report serious tax fraud. The scheme will target large corporates, wealthy individuals and offshore tax dodging.
🕵️ More Compliance Activity and Data Sharing
HMRC is being given more budget to recruit compliance officers and debt collectors. But beyond that, they’re investing in AI to make their investigations more effective and precise.
They’re also stepping up work with financial institutions to improve the quality of data they receive – such as interest income from banks. This means:
⚠️ Changes to Penalties – Especially for MTD Users
Late payment penalties are increasing from April 2025 for those under Making Tax Digital (MTD) for VAT and Income Tax. Here’s the breakdown:
On top of that, the entire HMRC penalty system is under review. The plan is to keep distinguishing between honest mistakes and deliberate fraud – but expect the framework to be stronger and simpler across the board.
📈 Higher Interest on Unpaid Tax
From 6 April 2025, the interest rate HMRC charges on late tax payments is increasing by 1.5 percentage points. That brings it to Base Rate + 4% – a significant cost if you fall behind on payments.
💡 Our Take: Stay Proactive, Stay Compliant
It’s clear HMRC is modernising at pace, and enforcement is going to be tighter – especially for those not keeping on top of their records or tax planning.
At A&C Chartered Accountants, we’re here to make sure you’re always one step ahead. Whether it’s preparing for MTD, reviewing your PAYE codes, or helping you understand what these changes mean for your business, we’re in your corner.
✅ Need Help Dealing with HMRC?
We can support you with:
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PAYE and payroll reviews
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Self-assessment preparation
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Navigating Making Tax Digital
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Communication and negotiations with HMRC
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‘Time to pay’ arrangements if you’re struggling with a tax bill
Get in touch with your client manager or drop us a message – we’re always happy to help.