Rachel Reeves Announces e-Invoicing Consultation

In her first Labour Party conference speech as Chancellor, Rachel Reeves unveiled measures aimed at boosting productivity, reducing fraud, and closing the tax gap. As part of these initiatives, HMRC will soon launch a consultation on electronic invoicing (e-invoicing) to promote its broader adoption across UK businesses and government departments.

E-invoicing has the potential to significantly reduce administrative workloads, improve cash flow, enhance productivity, introduce automation, and minimise tax return errors, all of which contribute to closing the tax gap. The consultation will seek input from businesses on how HMRC can encourage investment in e-invoicing and drive its uptake.

Reeves also announced that Exchequer Secretary to the Treasury, James Murray, who oversees the UK’s tax system, has been appointed Chair of the HMRC Board. In this role, he will guide the implementation of HMRC's three strategic priorities: closing the tax gap, modernizing and reforming, and improving customer service.

Additionally, HMRC plans to release a new Digital Transformation Roadmap in Spring 2025, outlining its vision to become a digital-first organization driven by customer insight. The roadmap will include initiatives to ensure digital inclusion and support for customers who are not yet able to interact digitally.

In a further update, HMRC has issued 200 additional offer letters as part of its effort to recruit 5,000 new compliance staff, with new employees joining the training program in November. This is part of HMRC’s broader strategy to enhance compliance and close the tax gap.

At the Budget on October 30th, the government will formally announce a consultation on the introduction of mandatory e-invoicing in the UK, which would allow for the automatic transfer of data between businesses.

Source: Gov.uk