HMRC’s new tools could save you time on tax returns

Self-assessment season is in full swing, and many sole traders across the country are already prepping their returns for the January 31 2026 deadline. 

If filing your tax return gives you a headache just thinking about it, HMRC’s new digital tools and support services might come as a welcome relief.

As part of a wider push to transform the process, HMRC has launched a range of changes to improve the experience for over 12 million self-assessment customers.

What’s changing for self-assessment filers?

HMRC has announced various measures to improve customer experience. Some of the main changes are:

• Improving the digital Self Assessment registration and opt-out processes
• Introducing better on-screen messages to reassure customers and reduce the need for them to chase progress on enquiries
• Improving the late filing and late payment penalties online appeals process

The changes are part of HMRC’s Transformation Roadmap, which was published on July 21 2025. It outlines digital improvements, services and measures that will transform the UK’s tax and customs system by 2030, in line with the government’s 2020 tax strategy. 

James Murray, Exchequer Secretary to the Treasury, said, “The government is modernising the service that HMRC offers for British people and businesses. 

“Our new payment plans for Self Assessment will save people time and effort with their tax affairs and help them avoid making mistakes.”

A major goal of the Transformation Roadmap is to establish HMRC as a digital-first organisation, with 90% of customer interactions taking place online by 2030. Customers without digital access, and those in vulnerable situations or with complex tax situations, will continue to receive targeted support from HMRC.

The new features and enhancements will be provided at no cost to sole traders and businesses, with 12 million expected to file a self-assessment tax return this year. These changes are designed to ease administrative burdens and address common pain points. 

A Which? survey stated that self-assessment tax returns take a combined 19 million hours to complete, that’s around two and a half hours on average per person. One in five report that the process takes less than an hour, while for others, it can take a laborious five hours. 

Why the HMRC Transformation Roadmap matters for sole traders

HMRC’s digital overhaul will help sole traders manage tax more effectively by tackling key pain points. 

A common headache for freelancers is tracking income across multiple gigs and invoices. By switching to the popular HMRC app or using your online account, customers can easily track income, deadlines, and access AI-assisted help without having to contact HMRC directly. 

In addition, the app provides helpful deadline reminders to help sole traders avoid late payment fines and interest charges. While a record 11.5 million tax returns were filed by the deadline in 2024, an estimated 1.1 million customers missed the deadline. 

Filing or paying your tax return late can lead to an initial £100 fine, followed by daily penalties, additional charges of 5% or £300 at 6 and 12 months, and further 5% penalties on unpaid tax at 30 days, six months, and 12 months, plus interest.

Lastly, flexible payment plans can also be set up online, which will be a huge help to those wanting to spread the cost of tax payments to improve cash flow. 

As Making Tax Digital (MTD) continues to roll out, digital tax tools will be increasingly standard. As of April 6 2026, sole traders and landlords with a qualifying income of more than £20,000 must now file their self-assessment tax return digitally.

What should sole traders do now?

To stay ahead of the January tax return deadline, sole traders can take these quick steps:

• Download the HMRC app or log in to your online account to check your annual income summary
• If you’re concerned about making the deadline, set up a Time to Pay arrangement to spread the cost across instalments
• Use HMRC’s updated digital assistant or webchat for any last-minute questions

We’d recommend starting to budget for future tax bills in good time and signing up for HMRC email alerts to stay informed.

While overhauling processes often requires some adjustment, the shift to more digital tools means managing your tax as a sole trader will ultimately be faster, simpler, and less stressful in the long run.