On September 23, 2024, the UK government announced plans to encourage the broader use of e-invoicing among businesses and government departments. The goal of this initiative is to reduce administrative burdens, enhance cash flow, boost productivity, implement automation, and minimize errors in tax filings, all of which would help narrow the tax gap.
His Majesty’s Revenue and Customs (HMRC) will soon initiate a consultation process to gather feedback from businesses on how HMRC can foster investment in and accelerate the adoption of e-invoicing. The date for this consultation has not yet been specified.
While specific e-invoicing proposals have not yet been released, businesses in the UK should be prepared for the potential introduction of mandatory e-invoicing, which could have widespread consequences for their operations.
In addition, it was announced that HMRC will publish a new Digital Transformation Roadmap in Spring 2025. This roadmap will outline HMRC’s strategy to become a “digital-first” organization and will include provisions to ensure digital inclusion and help businesses that are not yet fully equipped to operate in a digital environment.
