Source · Select Committees · Public Accounts Committee
Recommendation 37
37
Accepted
UK tax system lags behind other countries in digital efficiency and comprehensive taxpayer services.
Conclusion
We were also concerned that HMRC has not been making good use of other technologies. In particular, it appears that the UK’s tax system is not as efficient for customers as the systems in some other countries such as Estonia, Denmark, Finland, Canada and Australia.75 In 2023, the NAO reported that many tax authorities in other countries with large economies were providing digital services to VAT traders, personal taxpayers and corporate taxpayers that were not widely available in the UK, such as pre–population of tax returns with income and expenses, and enabling taxpayers to file objections to HMRC’s decisions digitally. The NAO also reported that 15 G20 countries had responded to a 2017 OECD survey, with nine reporting they provided a “whole of taxpayer” view across multiple taxes.76 HMRC is still working to provide UK taxpayers with this view through its single customer account programme.77
Government Response Summary
The government claims the recommendation is implemented and states that HMRC is increasing digital channel use and will publish a Transformation Roadmap this summer. Crucially, by the end of 2025-26, HMRC will procure an eCRM platform to provide a complete picture of customers’ tax affairs, addressing the 'whole of taxpayer' view.
Government Response
Accepted
HM Government
Accepted
4.3 The government agrees with the Committee’s recommendation. Recommendation implemented 4.4 HMRC has written to the Committee alongside this Treasury Minute response. 4.5 HMRC is changing how it interacts with customers, delivering a more streamlined, efficient tax system by increasing the use of digital channels allowing customers to self-serve, making it quicker and easier to meet their obligations and reducing the instances where customers need to call or write to HMRC. 4.6 HMRC is building in mobile messaging updates to customers at varying points in their HMRC journeys to provide them with reassurance, manage their expectations and reduce progress chasing calls. 4.7 HMRC will publish a Transformation Roadmap this summer, bringing together HMRC’s strategic and transformation ambitions into a single, public document. 4.8 The government is focused on modernising HMRC to become a digital-first organisation, having committed to reduce the volume of paper post sent whilst maintaining this provision for critical correspondence and the digitally excluded. 4.9 By the end of 2025-26, HMRC will procure an enterprise Customer Relationship Management (eCRM) platform, providing advisers with a complete picture of customers’ tax affairs, transforming how HMRC interacts with customers. The platform will support the government's aim for HMRC to modernise its systems, improve customer service, and close the tax gap.