HMRC is undergoing a major digital transformation, backed by a £500 million investment aimed at making 90% of taxpayer interactions digital by 2029/30. This shift is designed to streamline tax processes, reduce paperwork, and improve service delivery—changes that will directly impact how small businesses manage their tax affairs.
As reported by AccountingWEB, the initiative is part of a broader government strategy to modernise public services and improve efficiency across the board.
🔧 Key Changes for Small Businesses
- More Self-Service Tools: Expect more online tools and digital portals for managing tax returns, VAT, PAYE, and other obligations. These platforms will be designed to reduce the need for phone calls or written correspondence.
- AI-Driven Support: HMRC will introduce AI to handle common queries, which could mean faster answers to routine questions—but also fewer opportunities for one-on-one support.
- Less Paperwork: Outbound post will be reduced by up to 70%, with most communications moving online. This means it’s more important than ever to ensure your business contact details and digital preferences are up to date with HMRC.
- More Compliance Checks: With nearly 8,000 new roles being added—many in compliance and debt recovery—small businesses should be prepared for increased scrutiny and ensure their records are accurate and up to date.
✅ What You Can Do Now
- Go Digital: If you haven’t already, start using HMRC’s online services or accounting software that integrates with Making Tax Digital (MTD).
- Stay Informed: Keep an eye out for HMRC’s upcoming digital roadmap, which will outline how these changes will roll out.
- Support Your Clients: If you’re a small business advisor or accountant, help your clients transition smoothly by educating them on digital tools and compliance best practices.
While the move to digital promises greater efficiency, it’s essential that small businesses prepare early to avoid disruption. For more details, you can read the full article on AccountingWEB.