Workers across the UK are set to gain greater control over their tax affairs as the government today announced a new online Pay As You Earn (PAYE) service for approximately 35 million UK taxpayers.

This initiative is part of HM Revenue and Customs' (HMRC) ambitious Transformation Roadmap, unveiled today, which outlines plans to become a digital-first organisation by 2030, targeting 90% of customer interactions to take place digitally.

The new online service for all PAYE taxpayers will enable individuals to simply and easily check and update their income, allowances, reliefs, and expenses via their Personal Tax Account or through the HMRC app. This marks a significant step in simplifying processes and making it easier for citizens to fulfil their tax obligations, which in turn funds vital public services.

The Transformation Roadmap details over 50 IT projects, services, and measures designed to streamline the UK's tax and customs systems. A key component of this digital-first approach will involve HMRC automating tax processes wherever possible and introducing new digital self-serve options across various tax regimes.

Beyond enhancing taxpayer convenience, the digital shift is projected to deliver substantial savings. By the 2028-2029 tax year, HMRC expects to save £50 million annually by transitioning customer letters and reminders to a digital-first approach, a saving equivalent to almost 1,500 full-time nurses. Paper correspondence will be retained for critical communications and for those who are digitally excluded.

Increased investment in Artificial Intelligence (AI) will enable HMRC to monitor the tax system in near real-time and help customers meet their obligations. AI capabilities are planned for various work areas, including:

• HMRC advisers and caseworkers: Utilising AI to automate call summaries and providing internal GenAI Chat Assistants for support.

• Digital assistants: Developing new AI-powered features to help customers navigate HMRC services and improve GOV.UK content and guidance.

• Compliance: Implementing an automatic document identifier system for caseworkers to detect fraudulent documents through biometric likeness-liveness checks.

HMRC will also collaborate with developers to establish principles for third-party software using AI that interacts with the department and the tax administration system, aiming to foster innovation while minimising errors. James Murray MP, Exchequer Secretary to the Treasury, stated: "We are going further and faster to make HMRC fit for the 21st century, including delivering a simpler and easier system for all PAYE workers. By 2030, taxpayers can expect a modern and innovative HMRC with cutting-edge AI, industry-leading customer service practices, and a laser focus on delivering taxpayer value for money by ensuring everyone pays their fair share."

Mr Murray highlighted his key priorities: improving day-to-day performance and customer experience, reforming and modernising the tax and customs system, and closing the tax gap. As announced in the Spending Review 2025, HMRC will receive £1.7 billion over four years to fund an additional 5,500 compliance and 2,400 debt management staff, ensuring more of the tax owed is paid. A particular focus will be tackling wealthy offshore tax non-compliance, with an additional 400 specialists dedicated to this area.

JP Marks, HMRC's Chief Executive and First Permanent Secretary, affirmed: "The Government's ambition is for a simpler tax and customs system and this roadmap sets out how HMRC will deliver a first-class experience that feels different to their customers. By 2030, UK citizens will experience a tax administration system that is more automated, more focused on self-service, and better set up to get things right first time so they can fulfil their tax obligations."

The roadmap outlines delivery timescales, with HMRC committed to reporting on progress. Immediate measures this tax year include extending SMS confirmation services, improving Self Assessment registration, expanding voice biometrics, and offering employed parents the choice to pay the High Income Child Benefit Charge via their tax code. An enhanced reward scheme for informants targeting serious non-compliance will also be launched.

Further planned measures include digitalising the Inheritance Tax service, a new service for agents to digitally submit tax code impacting information, a Digital Disclosure Service for all taxes and duties, and piloting electronic trade documentation and verifiable credentials with US Customs and Border Protection.

HMRC aims to incentivise timely tax payments by simplifying and strengthening penalties. In the 2023-2024 tax year, HMRC collected 94.7% of the total tax due. New legislation from April 2026 will also tackle tax avoidance and fraud by umbrella companies, making recruitment agencies legally responsible for PAYE on workers' pay when using such companies.