HMRC package
At the Labour party conference (September 2024), Chancellor Rachel Reeves outlined a package of reforms to improve the UK’s tax system to help fix the foundations of the UK economy.
As part of the package, HMRC will launch a consultation on electronic invoicing (e-invoicing) to promote its wider use across UK businesses and government departments.
The introduction of e-invoicing is expected to significantly reduce administrative tasks, improve cash flow, boost productivity, introduce automation, and reduce errors in tax returns – all helping to close the tax gap. The consultation will gather input from businesses on how HMRC can support investment in and encourage e-invoicing uptake.
The Chancellor also announced that Exchequer Secretary to the Treasury James Murray, the minister responsible for the UK’s tax system, has become the Chair of the HMRC Board. This is to help oversee the implementation of his three strategic priorities for HMRC:
- closing the tax gap,
- modernising and reforming, and
- improving customer service.
It was also announced that a new Digital Transformation Roadmap, aimed to be published in Spring 2025, will set out HMRC’s vision to be a digital first organisation underpinned by customer insight. The Roadmap will include measures to ensure digital inclusion and support for customers who cannot yet interact digitally.
There was a further update that new staff are expected to join HMRC’s training programme in November as 200 additional offer letters have been issued as part of the 450 letters already sent.
This is part of HMRC’s plans to recruit an additional 5,000 compliance staff to help close the tax gap.
PAYadvice.UK 24/9/2024