- VAT Takes the Lead in Digital Transformation HMRC’s roadmap positions VAT as the vanguard of tax digitalisation, with Making Tax Digital (MTD) streamlining compliance, cutting errors, and saving businesses up to £915 million annually.
- Tech-Driven Services & Infrastructure Overhaul From a new PAYE portal to smarter digital gateways and automation, HMRC is modernising its systems to create intuitive taxpayer experiences and enhance real-time tax data access.
- E-invoicing & AI Shape the Future Upcoming consultations on e-invoicing and deeper use of AI signal a push toward real-time reporting and intelligent compliance—bringing UK tax administration closer to global digital standards.
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- Digital Transformation Roadmap: On July 21, 2025, HMRC unveiled its updated Digital Transformation Roadmap, aiming for a “digital by default” tax system by 2030, which emphasizes faster, more accurate, and automated VAT reporting.
- Shift to Real-Time Reporting: The roadmap signals a move away from paper-based filings to real-time digital tax models, with goals such as 90% digital taxpayer interactions and enhanced use of APIs, AI for compliance, and seamless data exchange to reduce manual processes.
- Compliance Risks and Business Adaptation: As HMRC tightens its compliance checks, businesses relying on manual VAT processes face increased risks. In response, forward-thinking companies are investing in ERP-native automation tools to streamline VAT management, ensuring compliance and improving accuracy in real-time data reporting.
Source Meridian