A new online service for over 35 million UK taxpayers to control their tax affairs, but why the change?
HM Revenue and Customs (HMRC) have begun to roll out its ambitious Transformation Roadmap and the first announcement from this, is a brand-new system for workers to take control of their tax affairs.
The new online Pay as You Earn (PAYE) service is designed to make it simpler for over 35 million UK taxpayers to check and update their income, allowances, reliefs and expenses.
PAYE taxpayers would then have the ability to access all this information via their personal tax account or by using the dedicated HMRC app.
A brand-new PAYE service but how does this affect UK taxpayers?
The change is being driven by HMRC who want to become a digital first organisation by 2030. The transformation roadmap includes over 50 IT projects, services and measures that will aim to help HMRC make 90 per cent of their customer interactions digital.
While this is just one of HMRC’s plans on their transformation roadmap, it is one they believe will help taxpayers understand their finances and take control.
The new service should make the tax system simpler and easier for taxpayers to check their finances and update them where necessary. The service would enable them to look over important aspects of their finances like income and allowances and update them where required.
Taxpayers need to be prepared for the prospect of an online shift as HMRC move towards becoming a digitally focused organisation. This is likely not to be the only change to come with other regimes expected to move online.
This means taxpayers should ensure they understand the changes and seek advice and support from finance experts if they are struggling.
Why are HMRC driving change?
HMRC is making sweeping changes across the organisation as they aim to save £50 million a year.
Their transformation roadmap outlines a list of over 50 initiatives and projects that will transform and modernise the current tax and customs systems, introduce new AI technologies and work with third parties and intermediaries.
As well as highlighting their plans to become digital first, they confirm their plans will make things much easier for taxpayers and businesses to contact and build a relationship with HMRC.
Speaking about HMRC’s announcement and plans moving forward, HMRC’s Chief Executive and First Permanent Secretary JP Marks said, “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.”
How can I prepare for the changes ahead?
Its important taxpayers understand the changes to come especially with processes set to become more digital in the near future.
The best approach is to speak with a financial expert who can give you all the advice and support you need to feel comfortable in your own financial position, understand what HMRC is changing and how you can prepare.
If you’re unsure about the changes and need support with your taxes, get in touch with our friendly, expert team.
