£200 million digital investment set to support growth

By April 2015, up to two million people will be able to take control of their tax affairs through their own online accounts, HMRC announced today.

Nearly five million small businesses will also be able to interact with HMRC digitally – gaining much greater control over their tax affairs. This will mean less red tape, and more practical and useful support and advice delivered online.

Digital transformation will enable people to spend more time developing their businesses and less on paperwork and bureaucracy. It also means a fairer, more level playing field, by helping HMRC to identify the minority who seek to get around the rules.

The new system will remove unfair competitive advantage from those who try to cheat the system.

Exchequer Secretary David Gauke said: “We want to give people the power to manage their tax affairs online as easily as they manage their bank accounts and this investment of over £200 million will allow HMRC to deliver a digital tax service fit for the twenty-first century.

“For individuals, this will mean a better understanding of what they are paying and where it is being spent. For business people, it will give the control over their tax affairs and flexibility to manage them that allows them to focus on growing the business.”

HMRC Chief Executive Lin Homer said: “This is a huge vote of confidence in HMRC. I am delighted that we have secured this investment, which will enable us transform our increasingly popular digital services and build a groundbreaking digital tax service. We are committed to doing business with our customers in the way they want to do it.”