COMPLIANCE
“One of the most striking themes was HM Revenue and Customs’ ambition to move beyond the traditional model of stakeholder management and embrace a true spirit of partnership with organisations like the Chartered Institute of Payroll Professionals”
perception of HMRC following publication of the roadmap. My answer to this question (paraphrased) was that it’s clear to see HMRC has listened to stakeholders, but as with any big promises, like those stated in the roadmap, the proof will be in the pudding. The reason I’ve shared this with you, is because JP picked out my words, “the proof is in the pudding”, when he committed to showing proof of progress in how HMRC operates, communicates and partners. This message of accountability and transparency ran strongly throughout the day. One of the most striking themes was HMRC’s ambition to move beyond the traditional model of stakeholder management and embrace a true spirit of partnership with organisations like the CIPP. This represents a cultural shift, so: l a readiness to listen l a willingness to adapt l a commitment to building services collaboratively with industry and technology providers. Technology and transformation Technology and, particularly, artificial intelligence (AI), featured prominently. HMRC has established an AI Board, headed by a specialist in the field, to drive adoption across the organisation. Already, AI is being deployed to support anomaly detection, compliance checks and note- taking, with demonstrations of generative AI creating highly realistic content presented during the conference. HMRC is even exploring models where AI is considered part of the workforce – a bold
step which reflects its determination to be an AI-first organisation. With Microsoft as its second largest supplier worldwide, HMRC is clearly positioning itself at the forefront of technological transformation. The challenge of the tax gap was also brought sharply into focus. Estimated at £46.8 billion, with £28 billion arising from small businesses through error or fraud, HMRC is intensifying efforts to strengthen data analytics and improve application programming interface connectivity with tech providers. Making Tax Digital, once thought by some to be a distant ambition, is now firmly progressing, with landlords and self-assessment cases set to be drawn into the framework. Beyond compliance and technology, customer experience is becoming a defining priority. The appointment of a new Chief Customer Experience Officer signals a deep commitment to improving how citizens and businesses interact with HMRC. Monthly updates to the HMRC app are already delivering enhancements, while a focus on automation, digital self- service and targeted support is shaping the organisation’s future model. Delegates noted, however, that good ideas at the top
don’t always filter down to the operational level, and HMRC’s leaders were clear that closing this gap remains a key focus. For the CIPP, the conference highlighted both the scale of HMRC’s transformation and the opportunity for pay professionals to play an active role in it. As custodians of compliance and facilitators of trust between employer, employee and the state, pay professionals are central to ensuring the health of the tax system. Therefore, the CIPP’s role as a trusted partner is more important than ever, not only in helping HMRC communicate its messages to industry but also in influencing the policy, technology and compliance frameworks which will define the future. The day closed with a sense of optimism. HMRC is changing not just what it does but how it does it. By embracing openness, evidencing delivery and inviting collaboration, it’s laying the foundations for a modern tax system, which works in partnership with those it serves. For payroll and the CIPP, this is a moment to lean into collaboration, strengthen member experience and lead the conversation on technology and compliance. n
29 | Professional in Payroll, Pensions and Reward |
Issue 115 | November 2025
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