UK: Upcoming Consultation on E-invoicing for B2B and B2G; Digital Transformation Roadmap will be released in Spring 2025

| Image Credits: "Rachel Reeves and Keir Starmer" by © UK Parliament / Maria Unger

On September 23, Chancellor Rachel Reeves revealed a series of measures designed to advance the new government's agenda, including efforts to improve the UK’s tax system and drive economic growth.

TAX REFORM PACKAGE ANNOUNCED BY HMRC

As part of the reforms, the Chancellor introduced a package aimed at strengthening the UK’s tax infrastructure. Central to this initiative is an upcoming consultation on the wider implementation of electronic invoicing (e-invoicing) across UK businesses and government departments.

The consultation, led by HM Revenue and Customs (HMRC), will seek input from businesses on how to promote investment in e-invoicing. 

The goal is to streamline administrative tasks, enhance cash flow, boost productivity, introduce automation, and reduce errors in tax returns—ultimately aiding in closing the UK’s tax gap.

In addition to this, Exchequer Secretary to the Treasury James Murray, the minister responsible for the UK’s tax system, has been appointed as the Chair of the HMRC Board. His role will be to oversee the execution of HMRC's three strategic objectives: closing the tax gap, modernising operations, and improving customer service.

DIGITAL TRANSFORMATION AND RECRUITMENT DRIVE

A key part of the Chancellor’s announcement was the planned release of a Digital Transformation Roadmap in Spring 2025. This roadmap will detail HMRC’s vision of becoming a digital-first organisation, prioritising customer insight and engagement. The roadmap will also outline measures for ensuring digital inclusion and supporting customers who are unable to interact with HMRC digitally.

To support this transformation and further close the tax gap, HMRC has accelerated its recruitment efforts. With 200 additional offer letters issued as part of a broader plan to hire 5,000 new compliance staff, the first wave of new hires is expected to join HMRC’s training programme in November. These efforts aim to bolster the department’s capacity to ensure compliance and improve the overall efficiency of the UK’s tax system.

SOURCE/ RECOMMENDED READ:

• Chancellor unveils package to deliver on promises of new government - GOV.UK (www.gov.uk)