HMRC Makes Steady Progress On Transformation Plans

HM Revenue and Customs (HMRC) has reported positive early results from its ongoing transformation agenda, according to its chief executive. The department embarked on a series of reforms in 2025 aimed at modernising operations, improving the customer experience, and enhancing resilience in a rapidly evolving global environment.

The chief executive, who transitioned to the role earlier in the year, reflected on major developments to date, acknowledged key challenges, and outlined priorities for the year ahead.

Leadership transition and key highlights

The chief executive, John-Paul Marks, took up the role in 2025, following his tenure as permanent secretary of the Scottish Government. Marks described the move as a career milestone and expressed pride in leading HMRC during a pivotal period.

Based in Edinburgh, he has focused on supporting greater regional representation as part of the Places for Growth initiative. Marks noted the significant work being carried out across HMRC's regional centres, highlighting operational improvements such as enhancing customer service standards, tackling fraud, and facilitating trade.

Progress in digital transformation

The department's digital transformation efforts have gathered pace, with around 80 percent of customer interactions now conducted through digital channels. HMRC aims to raise this figure to 90 percent in the near future.

The emphasis on online services is part of a broader push to streamline processes and raise customer satisfaction. Marks stated that debt levels are forecast to fall across each year of the current Spending Review period, which he attributed to ongoing reforms and strengthened compliance measures.

Team engagement and regional development

Marks underscored the importance of engaging staff and fostering a strong sense of purpose. He cited progress in building a positive working environment, underpinned by the HMRC Charter and open communication practices.

Visits to centres across the UK, from Glasgow to Belfast, allowed him to observe first-hand the diverse work of HMRC teams. Encouraging collaboration and empowering employees to drive reform have been central to the organisation's recent achievements.

Managing challenges and security threats

HMRC has faced significant responsibilities as the UK's revenue authority, including safeguarding national infrastructure and managing evolving security threats.

Early in Marks's tenure, the department responded to a cyber attack on the PAYE system, which triggered investigations and led to arrests domestically and overseas. The experience reinforced the need for robust fraud prevention and disaster recovery measures.

Marks said the department worked closely with partners and prioritised notifying affected customers. He also emphasised the importance of learning from such incidents and recognising staff efforts during challenging circumstances.

Roadmap for future reform

In July, HMRC published a Transformation Roadmap outlining its objectives for the current Spending Review period. The roadmap commits to modernising tax, customs, and valuations systems, with major projects such as the next phase of Making Tax Digital for Income Tax Self-Assessment due to begin from April.

Marks identified the coming year as a crucial phase for implementation, setting up projects for long-term success and integrating new technologies such as artificial intelligence into daily operations. He stressed the importance of supporting customers through this transition and continuing to build on existing capabilities.