From 21 July 2025, HM Revenue & Customs (HMRC) has rolled out a new online PAYE (Pay As You Earn) service aimed at giving approximately 35 million UK workers more direct control over their tax affairs. This service enables users to check and update income, allowances, reliefs, and expenses via the Personal Tax Account or the HMRC app.
As part of HMRC’s newly published Transformation Roadmap, the initiative represents one of more than 50 IT projects and service improvements intended to help the department become a digital‑first organisation by 2030, with 90 per cent of customer interactions expected to take place online. HMRC also expects to save £50 million a year by reducing paper‑based communications, equivalent to nearly 1,500 full‑time nurses in annual value.
Stakeholders including HMRC and Treasury officials emphasise that this service will simplify tax processes, reduce errors, and help people avoid chasing updates. As such, this announcement marks a significant step in the broader modernisation of the UK tax and customs system.
Service Launch Details
HMRC formally launched the new online PAYE service on 21 July 2025. Available via both the Personal Tax Account and the HMRC mobile app, the service allows PAYE taxpayers to review and amend details such as income, allowances, reliefs, and expenses. Designed for ease of use, the new platform ensures even those unfamiliar with tax procedures can navigate the process with confidence.
Scope and Reach
The service will be accessible to around 35 million UK taxpayers who pay PAYE tax directly from wages or pensions. It aims to provide simplified, self‑serve access to key tax data, removing unnecessary delays and reliance on postal communications
Digital First Transformation Roadmap
This service forms part of HMRC’s Transformation Roadmap, launched on the same day (21 July 2025), which outlines over 50 digital initiatives to revolutionise UK tax and customs systems through to 2030. The goal is for 90 per cent of customer interactions to be handled digitally by that year.
Alongside the PAYE tool, the roadmap includes projects such as enhanced on‑screen messaging, improved Self Assessment registration and appeals services, and shifts from postal to digital communication.
Financial and Service Savings
HMRC anticipates annual savings of about £50 million by reducing post and paper‑based correspondence, money that, for illustrative purposes, equates to the cost of employing 1,500 full‑time nurses. This saving supports the transition towards a leaner, more efficient service model that benefits both taxpayers and HMRC.
Stakeholder Perspectives
James Murray MP, Exchequer Secretary to the Treasury, commented: “The government is modernising the service that HMRC offers for British people and businesses. Our new payment plans for Self Assessment will save people time and effort with their tax affairs and help them avoid making mistakes.”
HMRC executives and other government officials have echoed the importance of the transformation programme, which aims to reduce the tax gap, improve customer experience, and streamline the journey for everyday taxpayers.
Broader Context and Implications
This launch arrives as HMRC continues to shift away from physical correspondence in favour of digital channels, a drive reinforced by recent government spending reviews and digital transformation targets.
The new PAYE tool complements other reforms such as the Making Tax Digital initiative, which mandates digital record‑keeping and submission for VAT and Self‑Assessment from 2026 onwards. By empowering individuals to manage their tax affairs in real time, HMRC expects fewer errors, reduced late penalties, and better planning, particularly for employees, contractors and pension recipients.
Conclusion
HMRC’s new online PAYE service marks a major milestone in the department’s shift to digital-first interaction. Launched on 21 July 2025, the platform extends self-help capabilities to about 35 million PAYE taxpayers, allowing them to update key tax details via the Personal Tax Account or HMRC app.
It is integral to a wider Transformation Roadmap of over 50 digital projects aimed at achieving 90 per cent digital interaction by 2030, while cutting around £50 million in annual postal costs.
This innovation is not just about convenience, it’s about empowering taxpayers, reducing administrative burdens, minimising errors and penalties, and better protecting public finances.
With broader reforms such as Making Tax Digital on the horizon, these digital tools mark a turning point in how individuals interact with HMRC. The new service offers greater clarity, control and transparency in tax affairs, and signals an ambitious new phase in modern tax administration in the UK.
