HMRC expands app use as digital tax services accelerate in UK

Traders Union
All News
Geopolitics & Trade
HMRC expands digital tax services

Highlights

HMRC app use grew to 7.6 million unique users in 2025–2026, including 2.8 million new users, with a 10 million target by April 2027.
HMRC reduced annual postal letters by 15 million over three years and targets a 75% further reduction by 2028–2029, aiming to save £50 million a year.
80% of HMRC customer interactions are now digital or automated, with over 350,000 users signed up for Making Tax Digital for Income Tax prior to the April 2026 rollout.

App adoption and service changes

As reported by GOV.UK, HMRC says 5.6 million taxpayers checked their pay in the HMRC app about 100 million times last year, equal to an average of 18 checks each. The app has 7.6 million unique users in 2025 to 2026, including 2.8 million new users, and HMRC is targeting 10 million users by April 2027.

The department says one in seven Pay As You Earn taxpayers has used the app to review pay before it reaches their bank account. The app also lets users view their National Insurance number, tax code, income and benefits, make Self Assessment payments, track letters and obtain tax estimates.

HMRC says the number of letters sent to customers has fallen by 15 million over the past three years, while average call waiting times have almost halved over the last two years to about 12 and a half minutes. Exchequer Secretary to the Treasury Dan Tomlinson says HMRC will end the era of post by default, with more than 100 personal tax letters becoming available digitally from summer 2027.

The department aims to reduce postal letters by up to 75% by 2028 to 2029, a move it says will save £50 million a year and give customers faster ways to manage their tax affairs.

Roadmap targets and compliance investment

One year after publishing its five-year Transformation Roadmap, HMRC says 20 million people used their Personal Tax Account and 80% of customer interactions took place through automated or digital self-serve channels in 2025 to 2026, up from about 65% in 2020 to 2021. It also says the rollout of GOV.UK One Login has made it easier for one million new customers to sign up for digital services.

HMRC says more than 350,000 sole traders and landlords have already signed up to Making Tax Digital for Income Tax, launched in April 2026 for those with qualifying income above £50,000. It describes the programme as the biggest change in how many customers interact with the tax system in 30 years, and says around 2 million businesses already using Making Tax Digital for VAT save an average of 26 to 40 hours a year on administrative tasks by keeping digital records.

The roadmap update also says HMRC is investing in AI technologies to identify non-compliance earlier and more precisely. Several private sector organisations are on a 12-month programme to test AI-driven tools, while the integration of the Valuation Office into HMRC in April 2026 adds that body's digital-first plans to the wider transformation programme.

Microsoft’s $2.5 billion Frontier Co. initiative, which we previously covered, is aimed at moving generative AI from pilots into day-to-day business operations. The unit will embed about 6,000 staff with corporate clients to help implement AI in real workflows, reflecting a broader shift from AI infrastructure spending toward practical adoption and measurable productivity gains.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.