New digital services promise quicker, simpler income tax returns for individuals and businesses.

HMRC has unveiled a series of improvements to its digital self assessment tools, aimed at making it easier for taxpayers to manage their income tax affairs. These changes are part of the HMRC Transformation Roadmap, a wider government initiative to modernise the UK’s tax system and improve how services are delivered by 2030.

Whether you’re a sole trader, landlord, or managing a business, these updates are designed to reduce stress, save time, and help you stay on top of your self assessment tax return obligations.

What’s New in Digital Self Assessment Services?

The latest updates include:

• Simplified digital self assessment registration and opt-out tools, helping new and existing users complete their setup with less hassle.

• Enhanced on-screen messages that provide real-time reassurance and status updates, reducing the need to contact HMRC for help or chase for updates like "verification successful waiting".

• Improved appeals process for late filing and late payment penalties through HMRC’s digital services.

These updates are aimed at improving user experience and helping individuals avoid mistakes in their self assessment process.

Supporting Flexible Payments and Digital Record Keeping

More than 12 million individuals are expected to file an assessment tax return for the 2024–2025 tax year. To ease the pressure, HMRC is actively encouraging early filing and offering support for those looking to spread the cost of their tax bill.

Taxpayers can now take advantage of:

• Budget Payment Plans — make weekly or monthly payments in advance of the final assessment.

• Online payment scheduling tools — better manage your first payment and ongoing obligations.

• Quarterly updates — prepare early and stay on track throughout the year.

These features are especially helpful for self-employed people and landlords who need more control over cash flow while complying with Making Tax Digital (MTD) rules.

Time to Go Digital: Compatible Software and Tools

As the move toward digital record keeping continues, HMRC is reminding taxpayers that paper records will no longer be accepted for MTD-compliant submissions. If you’re self-employed or run a small business, now is the time to start using MTD compatible software to keep digital records of your income and expenses.

You can now:

• Record and report income through compatible accounting software

• Track how much tax you owe in real time

• Avoid errors and missed deadlines through automated digital record submissions

• Get dedicated support if you’re unsure which tools are right for your business

These tools are designed to make life easier for busy taxpayers and support the government’s plan to simplify and modernise the entire income tax process.

What You Need to Do Now

To stay on track and avoid penalties, taxpayers should:

• Register for self assessment if it’s your first time

• Notify HMRC if you no longer need to file an assessment tax return

• Use HMRC-recognised compatible software to keep records and file

• Update personal details to stay connected to important alerts

• Stay alert to scams and false communication claiming to be from HMRC

Missing key dates or failing to prepare digital records correctly can lead to fines and disruption — especially when it comes to your final declaration at the end of the tax year.

A Smoother System, Built for the Future

The government’s plan is clear: provide modern, user-friendly digital services that make it easier for taxpayers to manage their affairs — and to free up more time for focusing on business growth and day-to-day life.

As the HMRC Transformation Roadmap continues to roll out, expect further tools and improvements that simplify how you report, pay, and stay compliant — all while reducing your reliance on phone calls, paperwork, and outdated systems.

For now, these new self assessment tools are a major step forward in making tax digital for the long term.

Need help navigating your self assessment tax return or choosing the right digital tools? Get in touch with our team today.

Source: HM Revenue & Customs, 28 July 2025