The department will next month launch a digital service enabling citizens to check their tax code and other info, while also planning a transatlantic pilot of new technological trade tools
HM Revenue and Customs will next month launch an online tool enabling tens of millions taxpayers around the country to access and amend their PAYE tax information.
The department is shortly to provide a digital “portal” for citizens to view government data on their interactions with the PAYE system – through which employers automatically deduct income tax and National Insurance contributions before paying staff wages.
This will enable users to better understand the tax regime, and take steps to amend incorrect info, according to a speech made this week by exchequer secretary to the Treasury James Murray – the de facto minister for HMRC.
“We know, that more automated and intuitive digital services are a win-win: they make it quicker and easier for people to get their taxes right, provide a better experience for customers, and ultimately mean we are collecting more of the tax that is owed,” he said. “That is why, from April we will go further by launching a new PAYE portal – a new, simple way for 34 million taxpayers to check the data that HMRC holds on their employments and pensions, to notify us of any changes, and to find simple explanations to understand the impact of changes on their tax codes.”
For those who pay income tax via the self-assessment process – for whom the threshold for annual trading income is to be raised from £1,000 to £3,000 – will also benefit “a new, simple online service to do so quickly and easily”.
The minister reiterated HMRC’s ongoing commitment to driving more citizens to use the department’s digital services – thereby relieving pressure on other support services. These efforts could be supported by changes to the law, according to Murray.
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“Digital service improvements will drive greater efficiency as, year-on-year, more taxpayers choose to use our digital services,” he said. “I have therefore asked HMRC to explore, through legislation if necessary, how we can cut the amount of post we need to send out as a result – saving money and putting our service firmly into the digital era.”
The minister told attendees that “modernisation and digitalisation are not just important for the tax system, but in customs too”.
He trailed a new exploratory exercise in which HMRC will work with its counterpart in the US.
“Today, I can announce our technical pilot with the United States Customs and Border Protection to test digital solutions that will speed up processes for US and UK businesses trading goods with each other,” he said. “In 2024, that trade was worth a combined £115bn to our countries. Our aim is to make supply chains between UK and US businesses more efficient through modernising how HMRC systems, international partners and businesses communicate with each other.”
Murray added: “The digital pilot will look to use real time data – such as digital certificates and online identifiers – to make processes faster and more efficient. Through our overall approach, we are bringing cross-border trade into the 21st century with more seamless integration between the UK and our trading partners – making agile, iterative improvements in partnership with businesses and trade bodies.”
The minister used the address to issue a reminder that this year will also bring with it the publication of a department-wide strategy for digital and data reform.
“Under this government, HMRC will become a digital-first organisation and so, later this year, following confirmation of Phase 2 of the Spending Review, we will publish an HMRC Transformation Roadmap, bringing together our strategic and transformation ambitions into a single, public document,” he said. “It will include details about how and when we will deliver the digital services that will mean a better experience for our 35 million individual taxpayers, for agents, and for the more than five million businesses in the UK.”
