HMRC has launched a new digital service that allows millions of UK workers to take more control over their tax affairs. The tool, available through the Personal Tax Account and HMRC app, is designed for individuals who pay tax through PAYE. It lets users view and update their income details, allowances, reliefs, and job-related expenses directly, without needing to call or write to HMRC.
This is part of a wider move to modernise how tax is managed in the UK. HMRC’s aim is to make 90 percent of all interactions digital by the end of the decade. The new PAYE service is one of over 50 digital projects in HMRC’s ongoing transformation programme, which includes the use of artificial intelligence, automation, and more intuitive online tools.
One of the most noticeable changes will be a significant reduction in paper post. HMRC expects to save around £50 million a year by cutting back on letters, reminders, and forms sent by mail. That money will be reinvested into improving digital services, though anyone who is digitally excluded will still be able to access information and support in more traditional ways.
In addition, HMRC is deploying new AI technology to support customer service staff and reduce the need for repeat calls. This includes digital assistants that help users find answers online and tools to ensure tax guidance is always up to date. In compliance and enforcement, AI is being used to detect suspicious claims and prevent fraud.
The changes will also make it easier for workers to report mistakes, pay any outstanding tax, or amend their tax code. For parents affected by the High Income Child Benefit Charge, the process of managing their tax position will become simpler too.
The government has allocated over £1.7 billion to support this shift to digital, which includes hiring thousands of new staff to back up the systems and provide support to users.
HMRC’s direction of travel is clear: reduce paper, increase efficiency, and give taxpayers the tools to manage their affairs quickly and accurately. For PAYE workers, this means fewer surprises, faster responses, and greater visibility into how their tax is calculated. It is worth checking your Personal Tax Account to explore what is already available.