HMRC to consult on e-invoicing
24 September 2024| CATEGORIES: e-invoicing, HMRC consultation| TAGS: e-invoicing, HMRC, UK
The Chancellor Rachel Reeves has outlined a package of reforms to improve the UK’s tax system.
e-invoicing
HMRC are to launch a consultation on electronic invoicing (e-invoicing) to promote its wider use across UK businesses and government departments.
The introduction of e-invoicing can 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.
This announcement follows a global trend towards the introduction of e-invoicing and digital reporting requirements (DRR). For information on the EU’s ViDA package which includes e-invoicing and DRR see our earlier blog articles here and here.
HMRC strategic priorities
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.
A new Digital Transformation Roadmap, expected 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.
Increases in HMRC compliance staff
New staff currently being recruited are expected to join HMRC’s training programme in November. This is part of HMRC’s plans to recruit an additional 5,000 compliance staff to help close the tax gap.
For further information please see the Treasury press release.