In her first speech to the Labour Party conference as Chancellor, Rachel Reeves pledged ‘no return to austerity’. The Autumn Budget ‘will be a Budget with real ambition’ which ‘keeps our manifesto commitments’.
Reeves said the Budget would not increase taxes on working people, ‘which is why we will not increase the basic, higher or additional rates of income tax, national insurance or VAT’. Corporation tax will be ‘capped at its current level for the duration of this parliament’ and the energy profits levy would be extended, she said.
It has also been confirmed that HMRC will soon launch a consultation on electronic invoicing (e-invoicing) to promote its wider use across UK businesses and government departments. The introduction of e-invoicing is said to significantly reduce administrative tasks, improve cash flow, boost productivity, introduce automation and reduce errors in tax returns – all helping to close the tax gap. The consultation will gather input from businesses on how HMRC can support investment in and encourage e-invoicing uptake.
The Chancellor also announced that Exchequer Secretary to the Treasury James Murray has become the Chair of the HMRC Board. The appointment is intended to oversee the implementation of his three strategic priorities for HMRC: closing the tax gap, modernising and reforming, and improving customer service.
It was also announced that a new Digital Transformation Roadmap, aimed to be published in Spring 2025, will set out HMRC’s vision to be a digital first organisation underpinned by customer insight. The Roadmap will include measures to ensure digital inclusion and support for customers who cannot yet interact digitally.
There was a further update that new staff are expected to join HMRC’s training programme in November, as 200 additional offer letters have been issued as part of the 450 letters already sent. This is part of HMRC’s plans to recruit an additional 5,000 compliance staff to help close the tax gap.
In her first speech to the Labour Party conference as Chancellor, Rachel Reeves pledged ‘no return to austerity’. The Autumn Budget ‘will be a Budget with real ambition’ which ‘keeps our manifesto commitments’.
Reeves said the Budget would not increase taxes on working people, ‘which is why we will not increase the basic, higher or additional rates of income tax, national insurance or VAT’. Corporation tax will be ‘capped at its current level for the duration of this parliament’ and the energy profits levy would be extended, she said.
It has also been confirmed that HMRC will soon launch a consultation on electronic invoicing (e-invoicing) to promote its wider use across UK businesses and government departments. The introduction of e-invoicing is said to significantly reduce administrative tasks, improve cash flow, boost productivity, introduce automation and reduce errors in tax returns – all helping to close the tax gap. The consultation will gather input from businesses on how HMRC can support investment in and encourage e-invoicing uptake.
The Chancellor also announced that Exchequer Secretary to the Treasury James Murray has become the Chair of the HMRC Board. The appointment is intended to oversee the implementation of his three strategic priorities for HMRC: closing the tax gap, modernising and reforming, and improving customer service.
It was also announced that a new Digital Transformation Roadmap, aimed to be published in Spring 2025, will set out HMRC’s vision to be a digital first organisation underpinned by customer insight. The Roadmap will include measures to ensure digital inclusion and support for customers who cannot yet interact digitally.
There was a further update that new staff are expected to join HMRC’s training programme in November, as 200 additional offer letters have been issued as part of the 450 letters already sent. This is part of HMRC’s plans to recruit an additional 5,000 compliance staff to help close the tax gap.
