HMRC Announces New Services for Self Assessment Customers as Payment Deadline Approaches

What's Happening?

HM Revenue and Customs (HMRC) has introduced new services aimed at simplifying the Self Assessment process for taxpayers. As part of its Transformation Roadmap, HMRC is enhancing digital registration and opt-out processes, improving on-screen messages, and refining the online appeals process for late filing and payment penalties. These measures are designed to support the millions of Self Assessment customers expected to make their second Payments on Account instalment by the end of the month. The Transformation Roadmap outlines HMRC's goal to become a digital-first organization by 2030, with 90% of customer interactions occurring digitally. This initiative includes over 50 IT projects and services intended to streamline the UK's tax and customs systems, making it easier for taxpayers to fulfill their obligations.

Why It's Important?

The introduction of these new services by HMRC is significant as it aims to modernize the tax system, making it more accessible and efficient for taxpayers. By simplifying the Self Assessment process, HMRC is helping individuals and businesses avoid errors and penalties, which can be costly. The digital-first approach is expected to enhance customer experience and reduce administrative burdens, potentially leading to increased compliance and timely tax payments. This transformation is part of the government's broader Plan for Change, which seeks to drive economic growth by improving public service delivery and reducing bureaucratic hurdles.

What's Next?

HMRC is encouraging taxpayers to file their Self Assessment tax returns early for the 2024 to 2025 tax year, coinciding with their Payment on Account. Early filing allows taxpayers to know their tax liabilities sooner and potentially adjust their next Payment on Account if their income has decreased. Additionally, HMRC offers flexible payment options, such as Budget Payment Plans, to help taxpayers manage their tax bills effectively. The registration deadline for new entrants to Self Assessment is 5 October 2025, and taxpayers must inform HMRC by 31 January 2026 if they believe they do not need to file a return to avoid penalties.