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Home » HMRC issues major tax update affecting millions of UK workers
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HMRC issues major tax update affecting millions of UK workers

By staff21 July 2025No Comments3 Mins Read

The tax office says the new online service will make it easier for PAYE taxpayers to check and update their income, allowances, reliefs and expenses

HMRC letter surrounded by pound coins
HMRC has announced a new tax service(Image: Getty Images/iStockphoto)

HMRC has today announced a new online Pay As You Earn (PAYE) service for around 35 million UK taxpayers.

The tax office says the new online service will make it easier for PAYE taxpayers to check and update their income, allowances, reliefs and expenses. It will be available via your Personal Tax Account online or through the HMRC app.

The new service forms part of plans for HMRC to become a digital first organisation by 2030, with 90% of customer interactions taking place digitally.

HMRC has already announced plans to save £50million a year by 2028/29 by axing paper letters unless for tax demands. The tax office will continue to write to households that don’t have the internet or struggle to access digital services.

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Its phone lines will also remain open. The tax office currently sends out letters for many reasons, including if you need to register for self-assessment.

James Murray MP, Exchequer Secretary to the Treasury, said: “We are going further and faster to make HMRC fit for the 21st century, including delivering a simpler and easier system for all PAYE workers.

“By 2030, taxpayers can expect a modern and innovative HMRC with cutting-edge AI, industry-leading customer service practices, and a laser focus on delivering taxpayer value for money by ensuring everyone pays their fair share.”

JP Marks, HMRC Chief Executive and First Permanent Secretary, said: “The Government’s ambition is for a simpler tax and customs system and this roadmap sets out how HMRC will deliver a first-class experience that feels different to their customers.

“By 2030, UK citizens will experience a tax administration system that is more automated, more focused on self-service, and better set up to get things right first time so they can fulfil their tax obligations.”

It comes after millions of workers were urged to keep an eye out for an important tax document. Your employer had to issue your latest P60 by May 31, by post or electronically.

Your P60 summarises your total pay and deductions for the tax year. It also contains your final tax code, and it is important you check this is correct in case you owe money to HMRC.

Tax codes are made up of a series of numbers and letters and are assigned to you by HMRC based on the information it has on your income.

The code shows how much of your income is taken in tax, and everyone who is paid through PAYE has one. The most common code is 1257L for people who have one job or pension – although not everyone will be on this.

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