The Roadmap sets out four areas where HMRC intend to reform and modernise the infrastructure of tax and customs administration:
Modernising their infrastructure and workforce
HMRC will modernise their IT estate by using fewer, more efficient and cost-effective platforms. They will also make changes to their legacy corporation tax system to ensure its continuing functionality and security, as the first step towards a new system which HMRC will work with stakeholders to design.
HMRC have also established a digital academy to ensure their workforce adapts to changing roles and skills, including the ability to use AI effectively.
Modernising how customers interact with HMRC
The Roadmap discusses the role of MTD for VAT and Income Tax to improve the customer experience and close the tax gap. Readers will be particularly interested in the Roadmap’s statement that HMRC do not intend to introduce MTD for Corporation Tax (CT). Instead, they will develop, in consultation with stakeholders, an approach to the future administration of CT that is suited to the varying needs of the diverse CT population.
This confirmation ends years of uncertainty around if and/or when MTD for CT would be introduced. It will come as welcome news to corporates who had concerns regarding the complexities and ultimate benefits of such a system. Whilst the Roadmap makes it clear that the CT system will undergo modernisation, no further detail is given. Taxpayers should monitor announcements carefully to ensure they have their say in the development of the future system.
The Roadmap also confirms that HMRC are exploring increasing adoption of e-invoicing across UK business and the public sector, following the recent e-invoicing consultation.
Simplifying and modernising the legislative and administrative framework
Applying the more agile approach to consultation outlined in HM Treasury’s recently published ‘Tax Policy Making Principles', HMRC will work with businesses and representative organisations to identify ways to simplify tax and customs administration.
HMRC also have a programme of changes to the tax administration framework including work to resolve tax disputes more effectively and to incentivise customers to pay their tax on time.
Sharing data and collaborating cross-government
HMRC will make greater use of data sharing and collaboration across the public sector and, with the appropriate safeguards and controls, the private sector and international partners.