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      Chris Rogers and Neelam Rathod look at the headline themes and actions for tax leaders in HMRC’s Transformation Roadmap.

      Launched in July 2025, HMRC’s Roadmap Transformation Roadmap is a blueprint for delivering the tax authority’s strategic vision by 2030. It’s the result of a review into how best to use the government’s £7 billion investment in modernising the UK’s tax and customs system.

      HMRC’s overarching objective is to streamline tax and customs processes by simplifying tasks using cutting-edge technologies like artificial intelligence (AI). The aim is to empower businesses to concentrate on growth.

      And where HMRC leads, corporate taxpayers must follow. The Roadmap places an imperative on organisations’ tax functions to embrace automation while managing the associated risks.

      The Roadmap is a long and detailed document, running to almost 14,000 words. In essence, I’d say there are three important themes for tax leaders to be aware of:

      1. Embracing digitalisation and automation
      2. Strengthening compliance to close the tax gap
      3. Modernising and reforming operations

      Let’s look at each of these in turn, and what they mean for tax leaders as they seek to drive the transformation the Roadmap calls for.

      Chris Rogers
      Chris Rogers

      Partner, Global Compliance and Transformation, Tax & Legal

      KPMG in the UK

      Digitalisation and automation

      What HMRC’s Transformation Roadmap says

      HMRC sees technology playing a pivotal role in the future of tax administration. Tech-led innovation will streamline operations and reduce the administrative burden on businesses, keeping them focused on growth and innovation.

      With that in mind, the Roadmap is designed to facilitate a shift to a digital-first tax system. HMRC’s target is for 90% of interactions with taxpayers to be digital by 2030.

      What tax leaders need to know

      AI will inevitably reshape corporate tax practices by automating compliance, improving data analysis, and informing better decisions.

      This new reality is not lost on tax leaders. Last year, KPMG’s CTO survey found that more than half of corporate tax functions had either adopted generative AI technology (29%); or were actively exploring its potential (26%). 

      The Roadmap’s emphasis on greater technology use will generate even more impetus to embrace AI and automation.

      Adopting AI-powered tools should therefore be at the top of your agenda: it will allow you to automate compliance processes, improve efficiency and drive access to real-time data analytics. What’s more, streamlining your operations will free up your team for strategic decision-making and growth initiatives.

      The first step in AI adoption is to assess your current processes and identify the low-hanging fruit. Routine, repetitive, rule-based tasks (like VAT reconciliation) offer rich potential for immediate automation.

      Building on the success of these quick wins, you can then develop a business case for the wider transformation of your tax processes.

      Compliance and the tax gap

      What HMRC’s Transformation Roadmap says

      Another of HMRC's goals is to close the tax gap through robust compliance frameworks. 

      The authority intends to modernise taxpayers’ data collection, processing and exploitation to promote better compliance – for example, by improving the use of third-party data to pre-populate tax returns.

      At the same time, the Roadmap highlights forthcoming legislation to prevent non-compliance while also cracking down on tax avoidance.

      What tax leaders need to know

      Accurate, timely and reliable compliance, supported by a clear audit trail, has never been more important. You’ll need to review your tax compliance position, holistically and dynamically, and refine your tax governance by:

      • Building a robust risk governance framework – to identify your key tax risks and prepare for future developments.
      • Implementing tax policies aligned with ESG principles – to enhance your company’s reputation and reduce audit risks.
      • Communicating the value you deliver – to highlight the tax function’s role as both compliance enabler and strategic business partner through the relevant KPIs.

      The modernisation agenda

      What HMRC’s Transformation Roadmap says

      HMRC underlines the need for businesses to reform and modernise their tax operations and infrastructure; and equip their tax teams with the latest technology skills.

      There are no plans to extend the Making Tax Digital initiative to Corporation Tax (CT). But HRMC plans to develop a new approach to CT administration, which is suited to the diverse needs of corporate taxpayers. Plus, following a recent consultation, the Roadmap explores how to boost the uptake of e-invoicing.

      What tax leaders need to know

      With HMRC increasingly going digital, tax leaders must prioritise upskilling their people with technology capabilities as well as technical tax knowledge.

      Developing agile, skilled teams capable of navigating today’s complex tax landscape will involve:

      • Creating comprehensive training programmes – focused on both technological and tax knowledge.
      • Familiarising your team with new technologies – to enable the smooth implementation and adoption of AI and automation tools.
      • Encouraging continuous learning and adaptation, so that your team remains competitive in a digital-first environment.

      Transforming amid mounting pressures

      HMRC’s Roadmap has landed at a time when tax functions are under intense pressure on all fronts.

      Trade uncertainty is causing acute concern, and the compliance load is on the rise. There are requirements for greater transparency and real-time reporting and major new regulation like e-invoicing and BEPS Pillar 2, to get to grips with.

      Indeed, according to our latest CEO Outlook, 79% of chief executives expect trade regulations to negatively impact their organisations. More than 50% are worried about the growing compliance burden.

      However, the Roadmap presents a unique opportunity to future-proof your tax function and enhance its strategic role. By aligning your transformation with other business functions, you can unlock greater value and agility and strengthen your influence within the business.

      The KPMG team combines deep technical tax knowledge with technology expertise. Our unique Powered Enterprise methodology speeds up tax transformation and minimises risk, thanks to our proprietary assets and accelerators.

      Please get in touch to see how we can help you adapt to the demands of the HMRC Transformation Roadmap.

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