HMRC Stakeholder Digest - 30 July 2025

Please see the following message from HMRC, which we are sharing for information:

BUSINESS TAX

HMRC’s Annual Report and Accounts 2024-25 

We published our Annual Report and Accounts for 2024-25 on 17th July. 

HMRC generated record revenues – £875.9 billion (an increase of 3.9% on the previous year) while providing crucial financial support to people and businesses across the country. Our compliance work also secured £48 billion, which would otherwise have been lost to the Exchequer through avoidance, evasion and other forms of non-compliance. This was an increase from £41.8 billion in the previous financial year and exceeded targets.

We remain focused on improving our efficiency and effectiveness and we are determined to fulfil our digital-first potential. 2024 to 2025 saw us continue improving and expanding 24/7 online services, which rate consistently above 80% for customer satisfaction. The HMRC app now has more than 5.9 million users, while more than 1.2 million families have claimed Child Benefit through it or via gov.uk. In 2024 to 2025, 83% of claims were made digitally, demonstrating the progress we can achieve.

Supporting more customers to self-serve online or using the HMRC app isn’t just beneficial for them – it also frees up our advisers to help those customers who need extra support or have more complex queries, enabling us to deliver a better experience for all.

The Transformation Roadmap we published last week sets out the detail on how and when we plan to deliver the digital services that will mean a better experience for individuals and businesses in the UK.

Read our Annual report and accounts 2024 to 2025 on GOV.UK.

We would be grateful if you could give us feedback on the content and presentation of our Annual Report by completing our short reader survey.

Updated Tax Policy Making Principles Published

On 12 June, the Government published its Tax Policy Making Principles. This sets out an updated approach to tax policy making within the cycle of a single major fiscal event each year. 

This publication reflects feedback from tax professionals gathered as part of the stakeholder engagement that Autumn Budget 2024 committed to.

The principles focus on:

• Predictability and stability – delivered through the single major fiscal event cycle.
• Smarter, more agile consultation – the government will engage stakeholders fully and flexibly when developing tax policy.
• Transparency – providing clear rationale for tax policy changes and assessments of policy impacts

Read the updated principles on GOV.UK.

Banking forum for UK tax personnel  

HMRC’s Large Business London team hold a biannual banking forum welcoming UK Heads of Tax to attend presentations and discussions covering relevant tax topics. 

The forum provides a place for HMRC to deliver educational messages relating to tax compliance as well as presenting an opportunity for banks to sight HMRC on upcoming sector-wide issues. It allows for discussion and sharing of best practice particularly in relation to the implementation of new legislation, and all tax regimes are covered.

The agenda is shaped by suggestions and feedback.

For further information, and for banks to register to attend future forums or to provide topic suggestions or feedback, please email [email protected].

PERSONAL TAX

Encourage young people to be summer-job ready with the HMRC app   

A lot of young people will now be working in summer jobs after finishing school or during the university holidays. For many, this will also be their first experience of paid employment.    

Downloading the HMRC app is a simple secure way to access the tax and employment details they need when they start work.  

Using the app, users can:

• Instantly access their National Insurance (NI) number, tax code, and employment history.
• Share key details with employers to ensure they’re paid correctly and taxed accurately.
• Keep their NI number safe in their digital wallet, reducing the risk of identity fraud.

More than 1.2 million people aged 25 and under have already downloaded the app. It’s a practical tool that helps young people working in temporary or casual roles to manage their employment-related tax affairs quickly and easily, without needing to call HMRC or wait for paperwork. 

By downloading the HMRC app young people can take control of their working life from day one.

Side Hustlers: Check if You Need to File a Tax Return

HMRC is advising those who earn over £1,000 from a side hustle income, such as online sales, content creation, or property rental, that they may need to register for Self Assessment and file a tax return. 

The deadline to file for the 2024–25 tax year is 31 January 2026. There’s no need to wait though, returns can be filed any time before then. Filing early allows taxpayers to know what they owe, spread payments, and avoid the January rush.  

Anyone who thinks they may need to complete a tax return can use the checker tool on GOV.UK to find out. New entrants to Self Assessment must register to receive their Unique Taxpayer Reference. 

Easy-to-use guides for side hustlers can be found at taxhelpforhustles.campaign.gov.uk.

Parents of teens reminded to extend Child Benefit claim online by 31 August 2025

HMRC is reminding parents of 16-19 year olds that they need to extend their Child Benefit claim by 31 August if their child is staying in education or training. Otherwise, their payments will stop automatically.

Child Benefit stops on 31 August after a child’s 16th birthday if not extended.

Parents can extend their claim via the HMRC app or at GOV.UK.

Child Benefit is £26.05 per week for the eldest or only child and £17.25 per week for each additional child. 

Warning for homebuyers as HMRC gets tough on bogus Stamp Duty Land Tax claims

Homebuyers are being warned to avoid Stamp Duty Land Tax scams, following a landmark Court of Appeal decision (Mudan & Anor v HMRC). 

HMRC is warning people purchasing properties to be vigilant of tax agents offering to secure Stamp Duty Land Tax (SDLT) repayments on their behalf where repairs are needed to a property they have bought. Making claims of this kind often leave the homeowner liable for the full amount of SDLT, plus penalties and interest.

The Court of Appeal decision confirms HMRC’s long-standing view that: if a property requires repairs but retains the fundamental characteristics of a dwelling, it is still suitable for use as a dwelling and attracts residential rates of SDLT. 

Anyone who is unsure of the rules should check the SDLT guidance on GOV.UK.

HMRC warns of Winter Fuel Payment scams 

HMRC has issued a warning to be on high alert for scams linked to Winter Fuel Payments (WFP) after receiving 15,100 reports of bogus activity in June. 

Fraudsters have been targeting individuals using SMS messages and phishing websites. Last month, HMRC took action to remove 4,600 fake websites linked to WFPs. 

HMRC urges individuals to be alert to suspicious communications and to report any suspect phone calls, emails or texts via GOV.UK. HMRC will never contact people by text to claim WFPs or request personal information.

Most people who are eligible for WFPs will receive the payments automatically without having to make a claim. Any recovery of the payment for pensioners whose total income is over £35,000 will be collected via Pay As You Earn (PAYE) or Self Assessment, dependent on how the individual pays tax on their income. 

For more advice on how to stay safe online, visit the Home Office ‘Stop! Think Fraud’ website at www.gov.uk/stopthinkfraud.

NEWS FROM OTHER GOVERNMENT DEPARTMENTS

10-Year NHS Health Plan Unveiled: Focus on Digital and Community Care

The Department of Health and Social Care has launched a 10-Year Health Plan aimed at transforming NHS services. The plan centres on three major shifts: moving care from hospitals to communities, embracing digital tools, and focusing on prevention over treatment.

A key feature is the new Neighbourhood Health Service, which will offer hospital-level care, including diagnostics and rehabilitation, at local centres staffed by multidisciplinary teams. These centres will operate 12 hours a day, six days a week. 

The NHS App will also be upgraded to serve as a digital gateway, enabling patients to book appointments, manage medications, consult clinicians remotely, and access a unified medical record by 2028. Innovations like AI scribes are expected to save clinician time, equating to thousands of additional GP hours.

Find out more about the plan at GOV.UK: ‘PM launches new era for NHS with easier care in neighbourhoods’.

Consultations:

Outcome of the HMRC Statistics User Consultation 2025 

HMRC would like to thank all those who contributed to the public consultation on proposed changes to our statistical publications.

Respondents included government departments, devolved administrations, academic and professional bodies, thinktanks, multinational corporations, and local government.

After carefully considering all feedback, we have now published our response and details of the changes we will be making to our statistical publications. 

For further details on the outcome, the feedback we received and HMRC’s responses, please visit the GOV.UK site Consultation on changes to HMRC statistics publications 2025.

HMRC Events: 

July Events

Dragons’ Den Event, London

On Tuesday 1 July, a panel of “Dragons” including Angela MacDonald, HMRC Deputy CEO and Second Permanent Secretary; Myrtle Lloyd, Chief Customer Officer; James Mitton, Director General of Enterprise Transformation Group; and Jo Causon, CEO of the Institute of Customer Service, met with external organisations to explore key problem statements.

Participants included Octopus Energy, Nationwide, and The Very Group. They tackled issues such as encouraging digital service use, empowering teams, and designing services around customer needs. Organisations pitched their ideas to the Dragons, who questioned and explored their potential application within HMRC.

The event sparked valuable engagement and strong ideas. James Murray, Exchequer Secretary to the Treasury and Chair of HMRC’s Board, joined in the afternoon to hear from the organisations. HMRC senior leaders will now review the ideas in more detail and consider piloting some through a test and learn approach.