20th Anniversary of HMRC
20 March 2025| CATEGORIES: digitalisation, e-invoicing, HMRC, HMRC consultation, tax compliance| TAGS: AI, consultations, customs simplifications, e-invoicing, HMRC
At an event marking the twentieth anniversary of the establishment of HMRC, Exchequer Secretary to the Treasury, James Murray MP, delivered a speech reflecting on the past 20 years and highlighting plans for the future of the tax authority.
The speech focused on the government’s commitment to modernising HMRC and the UK’s tax and customs systems, with a view to HMRC becoming a ‘digital-first organisation’. From an indirect tax perspective, key issues included electronic invoicing and the simplification of customs processes.
E-invoicing
The government is currently working with software developers including Sage and Xero to launch plans to roll out e-invoicing across the UK. Last month the government launched a public consultation on e-invoicing, see our article here for further details.
Customs pilot between UK and US
A technical pilot with the United States Customs and Border Protection was announced, to test digital solutions aimed at speeding up processes for US and UK businesses trading goods with each other. The pilot will look to use real time data, such as digital certificates and online identifiers, with a view to making processes faster and more efficient.
Improved Temporary Admissions
Simplifications and improvements are be made to the customs Temporary Admission procedure, to extend and simplify time limits for some goods, remove some restrictions on who can use the procedure and what they can do with their goods, and improve HMRC’s guidance.
Other points of note included:
HMRC use of AI
The potential use of generative AI to point customers to the advice they need on gov.uk is currently being tested. In addition, HMRC will increase the use of AI to improve compliance targeting and help staff productivity.
Consultations
This Spring the government will publish a consultation on a package of measures to tackle promoters of marketed tax avoidance alongside draft legislation on plans to prevent abuse by non-compliant umbrella companies by April 2026.
HMRC staff recruitment
Following the announcement in the Autumn Budget of plans to recruit an additional 5,000 new compliance caseworkers and funding for 1,800 debt collection officers over the course of this Parliament, it was confirmed that around 600 new compliance staff will start work this month.
Registration of tax advisers
From April 2026, it will be mandatory for tax advisers who interact with HMRC on behalf of clients to register with HMRC – and this Spring, a consultation will be launched on options to enhance HMRC’s powers to take swifter and stronger action against tax advisers who facilitate non-compliance.
A transcript of the full speech is available here.
There is also a press release accompanying the speech.