Chancellor of the Exchequer Rachel Reeves has outlined a package of reforms to HMRC, much of it previously mooted in the Labour Party’s election manifesto.
Reeves outlined the initiatives at the recent Labour conference, with HM Treasury publishing a statement detailing the ‘HMRC package’.
This HMRC Package included the following updates:
- HMRC is to launch a consultation on electronic invoicing (e-invoicing), which will “gather input from businesses on how HMRC can support investment in and encourage e-invoicing uptake”.
“The introduction of e-invoicing can significantly reduce administrative tasks, improve cash flow, boost productivity, introduce automation, and reduce errors in tax returns – all helping to close the tax gap. The consultation will gather input from businesses on how HMRC can support investment in and encourage e-invoicing uptake,” the Treasury statement said.
- A Digital Transformation Roadmap setting out “HMRC’s vision to be a digital first organisation underpinned by customer insight” will be published. The tax authority is aiming to launch this in Spring 2025. This roadmap “will include measures to ensure digital inclusion and support for customers who cannot yet interact digitally”.
- An additional 200 offer letters have been sent out to new recruits to join HMRC’s training programme in November as part of their plans to recruit an additional 5,000 compliance staff to help close the tax gap.
The Treasury statement outlined the development of an Industrial that “will be at the heart of the government’s mission to grow the economy, unlock investment and make every part of the country better off. It will focus on delivering long-term change to the economy by making Britain a clean energy superpower and accelerating to net zero, breaking down barriers to regional growth, and building a secure and resilient economy.”
A green paper will be published around the time of the Budget on 30 October, outlining the long-term sectoral growth and priority industries of the government, ahead of the final strategy published in the spring of 2025 following a consultation with business.
