HMRC has launched a new digital service that will make it much easier for 35 million people to take control of their taxes and the movements of things such as their income and expenses
Good news – workers are now able to take control of their tax affairs following the UK government’s announcement of a new Pay As You Earn (PAYE) service. Affecting 35 million on PAYE, the new digital system boasts more than 50 new measures, aiming to streamline processes and even cut costs by £50 million through reducing postal correspondence.
Available via their Personal Tax account or through the HMRC app, it will now make it “simpler and easier” for all PAYE taxpayers to check and update their income, allowances, expenses and reliefs, the gov.uk shared.
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The new service forms part of HMRC’s Transformation Roadmap, which launched on July 21, 2025, with a mission to become a digital-first organisation by 2030 and make 90% of customer interactions digital.
Setting up over 50 IT projects, services and measures, it will transform the UK’s tax and customs systems, making it easier to pay the tax that is spent towards public services and deliver the UK Government’s Plan for Change.
Under the digital-first approach, HMRC will offer additional digital self-serving alternatives across various tax regimes and, wherever possible, automate tax.
The new PAYE service will also allow the HMRC to save an annual amount of £50 million, equivalent to 1,500 full-time nurses. To do so, they will swap customer letters and reminders to a digital-first approach to minimise the use of paper correspondence by the 2028/2029 tax year.
The news follows other plans to incorporate more AI into their services, ensuring all guidance and content is up to date, as well as assisting in identifying fraudulent documents during compliance checks.
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James Murray MP, exchequer secretary to the treasury, said: “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,” he explained.
JP Marks, HMRC’s Chief Executive and First Permanent Secretary, also commented: “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.”
He added: “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.”
Other elements in the Transformation Roadmap are currently in progress for further usage, such as expanding the SMS confirmation services to include complaints, Self Assessment appeals, and other PAYE services.
Interestingly, in the 2023 to 2024 tax year, HMRC collected 94.7% of the total tax due. Later this year, they will share an update on modernising behavioural penalties.
