HM Revenue & Customs (HMRC) has published its one-year progress update on the government's plan to create a 'more efficient, modernised and automated tax and customs system,' revealing four key commitments that have not been met. The original roadmap, announced in July 2025, outlined over 25 goals to simplify tax interactions for individuals and businesses. While many commitments have seen good progress or completion, specific delays affect services for PAYE taxpayers, Child Benefit claimants, case management, and dispute resolution.
Unmet Commitments Detail Delays
The four unmet commitments include a new online expenses service for PAYE taxpayers, a digital Child Benefit claim tracking service, enhanced case management systems, and an update on the dispute resolution consultation. These delays push expected launch dates into 2026-2027.
PAYE Expenses Service Stalled
The roadmap promised a new 'expenses service' allowing PAYE taxpayers to submit claims for tax relief and supporting evidence in one place, initially slated for 2025/2026. The update confirms this goal was 'not met,' with the service still in private beta—a testing phase limited to a small user group. HMRC now plans a wider rollout in 2026 to 2027.
Child Benefit Digital Tracking Delayed
A service enabling Child Benefit claimants to track claims and view payments in real-time was expected from 2025-2026. The update states this goal is unmet, noting: 'HMRC is developing a Child Benefit claim tracking service, to deliver incrementally from end 2026 to 2027.'
Case Management Enhancements Incomplete
Under Labour's drive to improve productivity and trust, HMRC aimed to enhance case management systems to integrate processing of letters, forms, and penalties. The update admits this was not met, adding: 'But HMRC continue to make improvements to case management systems to streamline compliance activity, making it more efficient for customers and those who act on their behalf.'
Dispute Resolution Update Pending
The progress update was meant to include an update on a consultation improving HMRC's alternative dispute resolution and statutory review processes. No update was provided, with a statement noting: 'HMRC is analysing the feedback provided by stakeholders and will provide an update in due course.'
Completed Commitments and Progress
Despite these delays, the update reports that over 25 other commitments have shown good progress or been fully completed. Achievements include launching a new online service for PAYE taxpayers, allowing Self Assessment customers to close records quickly, enhancing the Child Benefit service for High Income Child Benefit Charge payments via PAYE tax codes, testing new ways to notify taxpayers of changes, launching the Tax Confident campaign, piloting a Tax Facts Vocational lesson for 16-18 year olds, and updating interest rates for late payments. HMRC continues to work toward a fully modernised tax system, with the next major milestones expected in 2026-2027.
