Tag: HMRC

New Vaping Products Duty comes into effect from today

  • New Vaping Products Duty and Vaping Duty Stamps Scheme come into effect from 1 October 2026.
  • All vaping liquids manufactured in, or imported into, the UK from 1 October are now subject to excise duty.
  • New vaping duty stamps to start appearing on retail packaging, which will support the high street by helping to combat illicit trade.

A new excise duty on vaping products has come into force in the UK today (1 October 2026) to reduce the affordability and appeal of vaping, especially to young people and non-smokers.

Vaping Products Duty is charged at £2.20 per 10ml of vaping liquid and will be paid by manufacturers, importers and warehousekeepers approved by HM Revenue and Customs (HMRC). It is a commercial decision whether the duty cost is passed on to retailers and consumers.

HMRC has also launched the Vaping Duty Stamps Scheme. Once fully rolled out, vaping duty stamps will provide digital traceability throughout the supply chain, enhancing consumer protection, and helping the high street by strengthening the fight against illicit trade.

This will also support the government’s commitment to back legitimate businesses, crack down on rogue operators and create fairer, safer high streets.

To support businesses, HMRC has introduced a six-month grace period meaning wholesalers and retailers can sell any existing eligible unstamped, non-duty liable, stock until 31 March 2027.

But from 1 April 2027, all vaping products sold in the UK must carry a valid vaping duty stamp and consumers should only buy duty-stamped vaping products. Anyone who suspects a vaping product may be illicit can report it to HMRC.

Tobacco duty rates have increased today to maintain the financial incentive for current tobacco smokers to switch to vaping. This is a one-off (pro-rata) increase of £2.20 per 100 cigarettes or per 50 grams of tobacco, in addition to the standard tobacco duty escalator. 

James Murray, Financial Secretary to the Treasury and Paymaster General, said: Our new measures will help get illicit vapes off high streets across the country.

“We’re backing all those retailers who play by the rules by making it easier for law enforcement agencies to take action against those who don’t.”

Karin Smyth, Minister of State for Health, said: “Our public heath advice is clear: while vaping is less harmful than smoking and can help adult smokers to quit, children and non-smokers should never vape.

“These measures are an important step in our ambition to tackle youth vaping by reducing the affordability of vaping products, which goes hand-in-hand with the work we are already doing to tackle the appeal and availability of vapes on our high streets.”

Further changes to vaping and tobacco-related products that come into effect today are:

  • vaping duty stamps will start to appear on retail packaging
  • new personal allowance rules for travellers bringing vaping products into the UK

More than £300 million paid out through Help to Save with thousands more savers set to benefit 

  • More than £300 million has been paid out to people on a low income through Help to Save.
  • Eligibility for Help to Save will be expanded from 2028, so more people than ever before can benefit from the government savings scheme.
  • More than 44,500 people on a low income in Scotland have opened a Help to Save account.

With more than £300 million having been paid out in bonus payments, and thousands more people set to be eligible for an account through the Help to Save scheme, HM Revenue and Customs (HMRC) is kicking off UK Savings Week by reminding people who can benefit. 

Help to Save is a government savings scheme offering low-income earners a 50% bonus on whatever they can save. Between £1 and £50 can be saved each month with an extra 50 pence added for every £1 saved.

Accounts can be open for up to 4 years, and people can save up to a maximum of £2,400, resulting in up to £1,200 government savings bonus being paid straight into their bank accounts. Bonus payments are made at the end of the second and fourth years and are based on how much has been saved.

In 2028, the earning criteria will be removed for people with caring responsibilities. The scheme will be open to all Universal Credit claimants, resulting in an additional 1.5 million households becoming eligible.

Latest figures show 44,950 Help to Save accounts have been opened in Scotland since September 2018, with savers depositing a total of £45.5 million into their savings pots.

Statistics also show that 94% of those who have opened a Help to Save account save the maximum amount of £50 each month.

Economic Secretary to the Treasury Lucy Rigby said: “Help to Save is a really beneficial scheme that offers a 50% government bonus on whatever you are able to save. We want more eligible people to take advantage of it.“

The scheme will also be more accessible as it will be delivered through a multi-provider model, instead of just one, so banks, building societies and credit unions will be able to offer the scheme directly to their eligible customers.

Peter Tyler, Director of Personal Banking at UK Finance, said: “Expanding Help to Save and enabling more financial services providers to offer the scheme directly is a positive step towards helping people build financial resilience.

“The scheme provides eligible customers with a great opportunity and incentives to develop regular savings habits.”

Money can be paid into Help to Save accounts via debit card, standing order or bank transfer. 

In the last year, nearly 24,000 people have chosen to open a Help to Save account via the HMRC app where they can keep track of deposits and view bonus payments.

It takes just a few minutes to check eligibility and open an account online on GOV.UK or via the HMRC app.

Money can be withdrawn at any time, although this may affect the 50% bonus payments.

Find out more about Help to Save at GOV.UK.

  1. Latest statistics on Help to Save up to April 2026 were released 16 September 2026.
 Number of Accounts Opened to end of April 2026Total value of deposits
UK Total656,700                    676,737,000            
England562,300580,130,000
North East27,90027,584,000
North West83,750                      84,975,000 
Yorkshire and The Humber60,90063,053,000
East Midlands53,80056,120,000
West Midlands62,35062,957,000
East of England58,15060,391,000
London76,95078,111,000
South East79,50081,298,000
South West58,95065,641,000
Wales30,45031,394,000
Scotland44,95045,574,000
Northern Ireland                      18,550 19,255,000

    Second registration window now open for tax advisers

    • Phase two of the new online registration requirement for tax advisers rolls out.
    • Advisers with Self Assessment or Corporation Tax accounts, but without an agent services account (ASA), now need to register.
    • Advisers who solely provide professional payroll services do not need to register before 18 November. Financial Services organisations do not need to register before 31 December 2026.
    • Mandatory tax adviser registration requirements will protect customers and raise standards in tax advice.

    Registration is now open for tax advisers in the second phase of the new Modernising and Mandating Tax Adviser Registration (MMTAR) rollout. 

    This applies to any advisers with Self Assessment or Corporation Tax accounts, but without an agent services account (ASA). They have until 18 November 2026 to register.

    HM Revenue and Customs (HMRC) is encouraging advisers in the second registration window to check if they need to register and submit their application as soon as possible. 

    More than 4,000 applications were submitted and over 2,000 accounts created during the first registration window, which targeted the smallest agent audience group.

    These mandatory changes are designed to raise standards in the tax advice market, protect taxpayers, and support those who play by the rules.

    MMTAR is a single, streamlined digital registration system that replaces a range of previous processes, making it easier for tax advisers to interact with HMRC.

    Registration is free and online. Step-by-step guidance and an interactive checker tool are available on GOV.UK to help advisers understand if they need to register and what they need to do. Eligible tax advisers must meet HMRC’s registration conditions to apply for an ASA. 

    Robert Jones, HMRC’s Director of Intermediaries, said: 

    “Together, these measures will reinforce trust and transparency across the tax advice market, supporting high standards and helping taxpayers access advice with greater confidence. 

    “Now that the second registration phase is open, advisers in the next group should check the guidance on GOV.UK and make sure they register by 18 November 2026.”

    Registering on time will help advisers to continue supporting their clients without disruption and maintain the trust that individuals and businesses place in professional tax services.

    Advisers who missed the first registration window or who are new entrants to the tax advice market should register as soon as possible. Advisers who submit an application and receive a registration number can still continue to engage with HMRC while their registration is being processed. Access to HMRC’s online services will not be affected in the short term.

    HMRC may limit an adviser’s ability to act on behalf of clients if they fail to register when required. Advisers who continue to operate without completing the registration requirement could also face enforcement action, including financial penalties.

    Extend Child Benefit for your teen before 31 August

    • Parents of 16 to 19-year-olds starting further education or approved training courses must extend their Child Benefit claim by 31 August or payments will stop automatically.
    • Scottish pupils received their exam results on 4 August and many will now be confirming their education or training plans for the autumn.
    • Parents can extend their claim in minutes using the HMRC app or GOV.UK.

    Parents of 16 to 19-year-olds have just 2 weeks left to tell HM Revenue and Customs (HMRC) whether their child will continue in non-advanced approved education or training, or they risk missing out on Child Benefit payments.

    Following the release of National 5, Higher and Advanced Higher results on 4 August, many teenagers across Scotland will now be making decisions about their next steps in education or training.

    For families whose teenager is staying in non-advanced approved education or training, Child Benefit can continue, but only if parents act before 31 August. 

    Parents can extend their claim in minutes using the HMRC app or on GOV.UK. Those who received a letter from HMRC can also scan the QR code to go straight to the digital service. Payments will stop automatically for anyone who hasn’t responded by the deadline.

    More than 372,000 parents have already extended their Child Benefit payment digitally ahead of the deadline.

    Child Benefit is worth up to £1,406.60 a year for the eldest or only child, and up to £930.80 a year for each additional child.

    Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Exam results season is a big moment for teenagers deciding their next steps, and it’s the perfect time for parents to confirm those plans with us. 

    “Child Benefit is a vital source of support for many families and we don’t want anyone to miss out. It only takes a few minutes using the HMRC app or GOV.UK, so make sure you’re receiving the payments you’re entitled to.”

    Child Benefit continues for children in full-time, non-advanced education, including A levels, T levels, Scottish Highers, NVQs up to level 3, and certain approved training schemes. A full list of approved education routes is available on GOV.UK.

    Parents whose child’s plans change, for example if they leave education or start a paid apprenticeship, must tell HMRC straight away to avoid being overpaid. 

    If a Child Benefit claimant or their partner has an individual adjusted net income of more than £60,000, the higher earner may need to pay the High Income Child Benefit Charge (HICBC). Use the Child Benefit tax calculator on GOV.UK to find out how much HICBC to pay. Eligible parents can pay through their PAYE tax code using the HICBC digital service, or through Self Assessment.

    Make the most of Playday with Tax-Free Childcare

    • Working families urged to sign up for Tax-Free Childcare on Playday to help pay for holiday clubs, after-school clubs, nurseries and childminders
    • Latest statistics show families save almost £100 a month with Tax-Free Childcare
    • Number of families using Tax-Free Childcare for children aged 8 and above increased by 20%

    Working families are being encouraged to check if they could cut the cost of childcare this Playday (5 August), as HM Revenue and Customs’ (HMRC) latest statistics show families using Tax-Free Childcare saved an average of almost £100 a month.

    Playday, the national day for play, is a reminder for eligible parents to see if they could benefit from the scheme. Tax-Free Childcare can provide up to £2,000 per year per child (or £4,000 for a disabled child) helping manage childcare costs while balancing work and family life.

    People can visit GOV.UK to check eligibility and sign-up for Tax-Free Childcare.

    Once families have signed up, they can receive a £2 government top-up for every £8 they deposit into their account. Families can open an account for each of their children aged up to 11 and, if they have a disabled child, aged up to 16.

    It can be used to pay for any approved childcare including nurseries, childminders, holiday clubs, breakfast clubs and after-school clubs. Almost 75,000 providers are now signed up to receive Tax-Free Childcare payments.

    While the majority of families who use the scheme have younger children, recent statistics show the number of families using it to pay for childcare for children aged 8 and above increased by more than 20% compared to the previous year.

    Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Tax-Free Childcare can help with your summer childcare plans and, looking to the term ahead, with whatever type of care you require for your child.

    “If you haven’t signed up already, do it today so you don’t miss out. Go to GOV.UK and search ‘Tax-Free Childcare’.”

    Families can receive up to £500 worth of top-up money, or £1,000 for a disabled child, every 3 months.

    Once families have opened a Tax-Free Childcare account, they can deposit money and use it straight away or keep it in their account to use it whenever it’s needed. Unused money can be withdrawn at any time.   

    Families could be eligible for Tax-Free Childcare if they:     

    • have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they can receive up to £4,000 a year until 1 September after their 16th birthday   
    • the parent and their partner (if they have one) earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average  
    • each earn no more than £100,000 per annum   
    • do not receive Universal Credit or childcare vouchers    

    Tax-Free Childcare can be used alongside the government funded childcare hours, subject to eligibility. 

    HMRC urges customers not to ignore Simple Assessment letters

    • HMRC will send Simple Assessment letters for the 2025 to 2026 tax year this summer.
    • The letters are sent to those who have tax to pay on income that has not been taxed through Pay As You Earn (PAYE) or Self Assessment.
    • HMRC is encouraging recipients to not ignore the letters.

    HM Revenue and Customs (HMRC) is encouraging people who receive a Simple Assessment letter this summer to not ignore it, and to check the details and pay any tax owed.

    Every year HMRC writes to people who need to pay tax on income which has not been collected through PAYE or Self Assessment.

    The letters – known officially as PA302 – set out exactly how much tax is owed and why. 

    Customers may receive a Simple Assessment tax calculation letter if they have tax to pay that HMRC cannot collect automatically, for example:

    • there is tax to pay on interest on savings or dividends
    • a second income has not been taxed
    • tax is due on pension income 
    • received more tax-free allowance than they were entitled to
    • the tax cannot be collected through a tax code (for example, larger amounts owed, typically £3,000 or more)

    Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “If you receive a Simple Assessment letter and have tax to pay, please don’t ignore it. It is quick and easy to pay any tax owed via the HMRC app.

    “If you need extra support, or want to find out more, search ‘Simple Assessment’ on GOV.UK.”

    HMRC will issue around 1.8 million Simple Assessment letters. People should check the figures in their letter against their own records and pay any tax owed by 31 January 2027, unless a different date is shown. Payments can be made in full or in instalments before the deadline and do not require a tax return.

    Customers can pay using the free and secure HMRC app, online via GOV.UK, by bank transfer or by cheque. Visit GOV.UK for a full list of payment methods.

    Detailed guidance on Simple Assessment – including a dedicated guide for pensioners – is available on GOV.UK. HMRC’s new Tax Confident website also offers clear, simple resources to help people understand their tax affairs with confidence. 

    The letters are official and arrive by post or appear in a customer’s Personal Tax Account online. Customers can check if a letter from HMRC is genuine on GOV.UK.

    Deadline approaches for first Making Tax Digital quarterly update

    • Sole traders and landlords earning more than £50,000 from their self-employment and property must send their first Making Tax Digital for Income Tax quarterly update by 7 August 2026
    • The quarterly update covers income and expenses for the first three months of the tax year.
    • The update takes minutes through recognised software and is not a tax return.

    More than 864,000 sole traders and landlords signed up to Making Tax Digital (MTD) for Income Tax have just two weeks left before the deadline to submit their first quarterly update.

    The update covers income and expenses for the first three months of the tax year. The deadline for submitting it to HM Revenue and Customs (HMRC) is 7 August 2026.

    The quarterly update is not a tax return. It is a short summary sent directly to HMRC through recognised software and takes minutes to complete.

    Customers who have not yet signed up can still do so now by visiting GOV.UK, where they can also find software and access free guidance and webinars. If customers use an agent, they can sign them up instead. 

    Some software includes digital support tool HMRC Assist, which gives tailored feedback to help customers spot potential errors before submission. Customers remain responsible for ensuring their return is accurate.

    After each update, users can see an estimate of their tax bill, helping them to plan ahead.

    Craig Ogilvie, HMRC’s Director of Making Tax Digital, said: “This is a landmark moment for the tax system. Hundreds of thousands of sole traders and landlords are now keeping digital records and will be sending their first quarterly update in the coming weeks.

    “For those already using software, this should be straightforward and take minutes. If you haven’t signed up yet, there is still time – visit GOV.UK and search ‘Making Tax Digital for Income Tax’ to get started.” 

    Making Tax Digital is now a legal requirement and customers in scope should check now that they are signed up, that their software is compatible and submit their update before the deadline.

    It will extend to those earning more than £30,000 from April 2027, and to those earning more than £20,000 from April 2028.

    The tax return deadline remains 31 January. Quarterly updates do not replace the tax return – customers will still need to submit their return and pay any taxed owed by the 31 January 2027.

    CASE STUDY

    “My first Making Tax Digital update was so easy – if they can all go this seamlessly, we’ll be set up for smooth sailing”

    Natasha Patterson, 33, is a full-time potter based in Whitehead, County Antrim, and is already ahead of the game – she has submitted her first Making Tax Digital for Income Tax quarterly update weeks before the 7 August deadline. 

    She has been working as a potter since 2020 and opened her studio shop – Natasha Swan Ceramics – in 2023, where she specialises in functional wheel-thrown tableware including mugs, salt pigs and reed diffusers.

    Like many small business owners, Natasha was not looking forward to a new tax obligation. She decided to submit early – just in case there were any issues along the way.

    Natasha said: “I was expecting there to be some hurdles and I wanted to give myself time to work through any issues but was pleasantly surprised to find the process very smooth and straightforward.”

    In the end, the submission itself took about ten minutes. Natasha had been adding receipts and updating her records throughout the quarter, so everything was ready to go when it came to submitting.

    “I went back to check I did it right about three times, but it really was very straightforward.

    “Everything made sense and was logical – it wasn’t overwhelming, even though it was all new to me.

    “If they can all go this seamlessly, we will be set up for smooth sailing at the end of this tax year.”

    One of the things she has valued most is being able to see a forecast of her tax bill straight away.

    “It’s great to have a forecast of what I owe already, without mounds of paperwork. I feel more prepared knowing what’s expected of me in the coming months and also more confident going into the second quarter now knowing how straightforward the first submission was.”

    Her message to other sole traders approaching their first update is straightforward. She said: “If you can complete your Self Assessment tax return, this is much easier. As far as tax submissions go, it was probably as pleasant as they come.”

    HMRC: Say ‘I do’ to getting your side hustle tax right

    • Wedding season is here – and so is a reminder that income from side hustles may be taxable
    • Anyone earning more than £1,000 may need to register for Self Assessment and declare their income to HM Revenue and Customs (HMRC)
    • A free online tool can help people earning extra money check if and when they need to report their additional income

    The invitations are out, the venues are booked and the flowers are ordered – but for wedding suppliers who have turned their hobby into a side hustle, there is one more item on the to-do list: checking their tax obligations.

    As wedding season gets underway, HMRC is reminding anyone earning extra income from activities like selling wedding stationery, filming the first dance or cake-making, that they will need to tell HMRC if they earn more than £1,000.

    HMRC’s Help for Hustles campaign is here to help side hustlers get their tax right, quickly and easily – whether that’s wedding suppliers, parents earning from a hobby business or content creators making money from posting about the latest trends online.

    Kevin Hubbard, HMRC’s Director of Small Business & Individuals, said: “For many people, a side hustle is a valuable source of extra income. If you’re earning more than £1,000 a year from your side hustle it’s important to understand your tax responsibilities, and HMRC wants to make that as straightforward as possible.

    “You can check if you need to do a Self Assessment tax return by using the tool on GOV.UK. It takes minutes to use, tells you exactly what you need to do and means no unexpected tax bills later.”

    If someone has earned more than £1,000 from their side hustle in a tax year, they may need to complete a Self Assessment tax return.

    They can use the ‘Where is your additional income from?’ tool on GOV.UK. It takes a few minutes to complete and, if a tax return is required, it will explain how to register.

    New entrants to Self Assessment should register for the 2025 to 2026 tax year by 5 October 2026.They must file their online tax return and pay any tax due by 31 January 2027.

    The £1,000 threshold covers all side hustle income combined – so someone earning £600 from wedding photography and £500 from social media posts would need to register as their total exceeds £1,000.

    Not all extra income is taxable. Selling unwanted personal belongings – such as clearing out a wardrobe – does not usually need to be reported to HMRC.

    But regularly selling goods for profit, or providing a service for payment, is likely to count as trading and may need to be declared. Customers can check if they need to tell HMRC about additional income on GOV.UK.

    CASE STUDY

    “As soon as the wedding bookings started coming in, I knew I needed to look into my tax”

    Lianna Dickson, 30, from Livingston, is currently on maternity leave from her role in influencer marketing and runs a successful wedding content creation business alongside family life as a new mum.

    After getting married in 2024, Lianna realised she regretted not hiring a wedding content creator to capture behind-the-scenes moments from her own wedding day. With a background in social media and a long-held dream of running her own business, she saw the opportunity to combine both and launched Captured By Fifteen.

    Lianna said: “I fell in love with all things weddings following my own and thought it was the perfect way to combine something I loved with the work experience I had.”

    As a wedding content creator, Lianna captures authentic, behind-the-scenes moments as they naturally unfold on her phone, delivering raw footage and professionally edited highlight reels within 24 hours.

    “Couples can wake up and relive their full wedding the very next morning in the most authentic way.”

    Her business took off quickly and within her first year she had shot almost 50 weddings. As bookings and income grew, she knew she needed to look into her tax obligations.

    “As soon as I started booking in a number of weddings I knew this was going to be a decent amount of extra money. I read a lot of information on GOV.UK and HMRC’s website.

    “Once I realised my income was over the £1,000 trading allowance, I knew I’d need to complete a Self Assessment tax return.

    “Everything online was super easy to understand.”

    She found the process more straightforward than expected, keeping a detailed spreadsheet with tabs for invoices, outgoings, subscriptions and mileage to stay on top of her figures throughout the year.

    “I had my tax return done within the hour. It was so much easier than I thought it would be.

    I thought I would need to input every single transaction and that it would take hours, but it wasn’t the case at all – I had been keeping record of all the numbers, so it was really just a case of filling in information and copying the figures over.”

    Her advice to anyone in a similar position is simple.

    “Just keep track of everything and speak to someone who understands the process — or look up videos of someone explaining it if you struggle with just reading things.”

    Lianna explains how her side hustle started on YouTube.

    HMRC is encouraging anyone in a similar position – whether filming weddings, photographing events, baking celebration cakes or selling handmade goods – to use the Tax Help for Hustles guide or the free online HMRC tool to check whether they need to register.

    5.6 million taxpayers check their pay in the HMRC app an average of 18 times a year

    • 5.6 million taxpayers checked their pay in the HMRC app last year a total of 100 million times – equivalent to 18 times each a year.
    • The app had 7.6 million unique users and 2.8 million new users in 2025 to 2026.
    • HMRC transformation is on track – with digital services taking off, and outdated communication being phased out.

    Millions of taxpayers are choosing to go digital and check their pay via the HMRC app, as HM Revenue and Customs (HMRC) reveals the service was used almost 100 million times last year.

    Publishing its Transformation Roadmap – Update, HMRC is setting out how it is transforming and modernising the way taxpayers interact with HMRC’s services, while also making tax easier to understand and simpler to engage with.

    The department highlights how its top-ranked app has been used by 7.6 million people in 2025 to 2026 – up 28% on the previous year, with user experience improved in recent months. HMRC has an ambitious target to reach 10 million users by April 2027.

    That means one-in-seven Pay As You Earn (PAYE) taxpayers have now used HMRC app to check their pay before it lands in their bank accounts, allowing them to plan and understand their finances better.

    The HMRC app is driving the digital-first agenda. The app allows customers to check their pay before pay day and check their National Insurance number, tax code, income and benefits, and users can make Self Assessment payments, track letters, get tax estimates and more.

    The number of letters HMRC has issued to customers has reduced by 15 million in the last 3 years and call waiting times have almost halved over the last 2 years, down to an average of around 12 and a half minutes.

    Speaking at the Institute for Government this week, Exchequer Secretary to the Treasury Dan Tomlinson MP set out how HMRC is transforming the way it supports its customers. He also announced that HMRC will bring an end to the era of post by default.

    From summer 2027, over 100 personal tax letters, that currently account for more than half of the 120 million letters HMRC sends every year, will be available digitally for the first time.

    The department has committed to reducing the number of postal letters issued by up to 75% by 2028 to 2029, saving £50 million a year and giving customers faster, simpler ways to manage their tax.

    One year on from publishing its five-year Transformation Roadmap, key reforms already delivered include:

    • giving taxpayers more ways to manage their money by enhancing the HMRC app
    • encouraging up-to-date record-keeping with the first phase Making Tax Digital (MTD) for Income Tax for sole traders and landlords with a qualifying income of above £50,000
    • 20 million people used their Personal Tax Account and achieved 80% of customer interactions through automated or digital self-serve channels in 2025 to 2026, compared with around 65% in 2020 to 2021
    • making it easier to sign up to HMRC’s digital services for one million new customers through the rollout of GOV.UK One Login

    More than 350,000 sole traders and landlords have already signed up to MTD for Income Tax. Launched in April 2026, it is the most significant change to how many customers interact with the tax system in 30 years.

    Around 2 million businesses already using MTD for VAT have found that keeping digital records means an average saving of 26 to 40 hours on administrative tasks a year.

    Dan Tomlinson, Exchequer Secretary to the Treasury, said: “HMRC is transforming so that dealing with the tax system is simpler, faster and more convenient. We’re making big progress, and I hope people will download the HMRC app to see how well it works for themselves.

    “There is more to do, but this is an important milestone on our journey towards a modern tax authority that saves people time, supports economic growth and helps ensure everyone pays the right tax.”

    JP Marks, HMRC’s Chief Executive and First Permanent Secretary, said: “This roadmap updates on the progress we have made in year one of HMRC’s transformation and openly sets out our plans for the future.

    “We are determined to go further, transforming digital customer experiences and strengthening our foundations for a more modern and secure tax, customs and valuation system. We are answering phones faster, collecting more debt, with tax receipts and HMRC yield up at record levels, with more to come.

    “We remain focussed on delivering an improved service for our customers and bringing in the revenue that underpins the vital public services on which we all depend, and I hope this roadmap helps explain the progress we have made, and our next steps.”

    The roadmap update also highlights how HMRC is investing in AI technologies to identify non-compliance earlier and more precisely. Several private sector organisations are currently on a 12-month programme to test AI-driven solutions to tackle non-compliance and help close the tax gap.

    Following the integration of the Valuation Office (VO) into HMRC in April 2026, the VO’s plans to become a digital-first, high-trust organisation are now included in the HMRC roadmap.

    The progress HMRC has made during the first 12 months underpins the ambitious plan to deliver a modernised tax and customs system that works for everyone, with planned activity for the year ahead focusing on further improving customer experience and strengthening compliance.

    The Transformation Roadmap – Update 2026 can be found on GOV.UK