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September 23, 2024
2024-1744

UK to launch a consultation on e-invoicing

  • The United Kingdom (UK) government has announced a package of reforms aimed at delivering on the agenda of the new government.1
  • The government has indicated that it would like to increase the use of electronic invoicing (e-invoicing) and will launch a consultation on this topic.
  • A new Digital Transformation Roadmap, expected in Spring 2025, will set out the UK tax authority's vision to be a digital-first organization.
 

On 23 September 2024, the UK government announced that it wants to promote the wider use of e-invoicing across UK businesses and by government departments. The introduction of e-invoicing aims 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 UK tax authority, His Majesty's Revenue and Customs (HMRC) will launch a consultation on the use of e-invoicing that will gather input from businesses on how HMRC can support investment in and encourage e-invoicing uptake. The date of the consultation has not yet been announced.

Although no detailed e-invoicing proposals have yet been issued, businesses operating in the UK should be aware that the adoption of mandatory e-invoicing would be a significant development, which would likely have far-reaching implications.

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" organization. The Roadmap will include measures to ensure digital inclusion and support for businesses that cannot yet interact digitally.

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Endnote

1 The full announcement is available at Chancellor unveils package to deliver on promises of new government - GOV.UK (www.gov.uk).

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Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young LLP (United Kingdom) London

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor
 

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