he Government is investing an extra £500 million to make 90% of HMRC customer interactions digital by 2030, focusing on digitising inheritance tax.
Announced in the Spending Review Green Book, the aim is to create a “truly digital-first” HMRC. Services will be available 24/7, and while phone lines and other support will remain for those who need them, there’s no detail yet on how the Treasury will encourage people to shift online.
Alongside this, HMRC will also receive £1.7 billion over four years to hire 5,500 compliance officers and 2,400 debt staff. This is expected to generate £7.5bn annually by 2029/30, though early returns may be slow due to training times.
The drive to digital will also cut costs. Moving more services online should save £126m by 2028/29. Wider HMRC savings of £773m are also planned, as well as £154m through reducing its London footprint by 25%, relocating staff and opening cheaper regional offices.
Legacy IT systems are being overhauled in a multi-billion-pound project, with AI and automation supporting staff and compliance work. A new Contact Centre as a Service system aims to cut phone wait times.
By 2030, 85% of HMRC staff will be based outside London. However, significant challenges remain, particularly around data migration and decommissioning old systems.
Finally, the Valuation Office Agency (VOA) will merge with HMRC, which is expected to deliver 5-10% savings by 2028/29.
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