Automating Income Tax Self Assessment Innovation Proof of Concept

Notice Information

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Notice Title

Notice Description

His Majesty's Revenue and Customs (HMRC) is the UK's tax, payments and customs authority, and we have a vital purpose: we collect the money that pays for the UK's public services, and help families and individuals with targeted financial support. HMRC's Transformation Roadmap sets a clear vision for the future tax and customs system, which envisages greater automation, increasing intermediation and integrating tax with the processes and systems taxpayers use in their everyday lives. To support this ambition, HMRC is seeking to explore, develop and test ideas with industry on how the payments, banking and fintech ecosystems could enable a simpler, more automated and customer-focused tax system. This will be delivered through co-created, innovation-led PoCs to safely test emerging data and fintech capabilities, enable rapid learning, and generate evidence to support informed horizon scanning and decision making. We are inviting suppliers to participate in a pre-market engagement exercise, to gather insights into a potential automating Income Tax Self Assessment (ITSA) Innovation Proof of Concept (PoC). If pursued, this PoC will seek to test improvements in close to real-time categorisation and calculation of tax liabilities, using advancements in transaction data and better integrations between payment system actors. It aims to go beyond what can be done in current accounting software. The list of non-exhaustive services under consideration are as follows: - A working PoC model developed and demonstrated in supplier(s) test / sandbox environment which tests how synthetic transactions can be: -- produced or captured (automatically, manually or via a hybrid approach) -- transferred to accounting software -- coordinated and used by accounting software to calculate tax liabilities across multiple income and expense streams -- transferred to HMRC via existing infrastructure (e.g. Making Tax Digital APIs) - Uses realistic supplier-generated synthetic data for two HMRC defined personas. - Demonstrates model impact on HMRC defined transactions which are commonly mis-categorised; mis-apportioned; have unclear gross / net settlements. - Sufficient build and operational detail to demonstrate end-to-end feasibility, rather than solely conceptual designs or options appraisals. These products/services are expected to be key enablers to delivering the following capabilities: - Tax system simplification - Upstream compliance - Customer financial clarity and cash-flow management - Business systems integration - End-to-end data propagation - API handling HRMC are considering phasing this procurement into the following: (1) preparation; (2) build; (3) test and evaluation with conditional progression to build phase subject to agreed success criteria. Phase 1: Preparation (8 weeks): - Supplier generation of robust realistic synthetic payment data (assured by HMRC) - Supplier evaluation plan including impact metrics - Baseline of synthetic payment data established - System design blueprint of proposed working model Phase 2: Build (12 weeks): - Design sprints including extensive records, resulting in the working technical demonstrator. - Model must be developed and demonstrated in supplier(s) test / sandbox environment using agreed synthetic data Phase 3: Test and evaluation (6 weeks testing, 6 weeks evaluation): - Test of the technical demonstrator by the supplier(s) and HMRC, against agreed metrics - Evaluation reports of the technical demonstrator, including scalability and re-use recommendations This PoC approach is focused on structured discovery and learning. It is not a commitment to implement a specific solution, technical design, or live service.

Planning Information

The purpose of this exercise is to engage the industry and gather market insights that will help us shape a potential procurement, including the refinement of market capability, capacity and appetite. Your engagement will help us to ensure any future agreement is fit for the future. A market engagement event will be held on Monday 29th June 2026 from 09:30am to 10:30am via Microsoft Teams. The event will include an overview of the challenge from HMRC colleagues, visibility of a potential procurement structure and will allow time for some questions and answers. Attending suppliers will receive a form after the session to provide feedback to help inform our future approach to this project. To register for this pre-market engagement event please email the below people by 5pm on Friday 26th June: josh.jones1@hmrc.gov.uk AND ruth.whiteside@hmrc.gov.uk. Include the notice or procurement reference in the subject line. In your email include the names and emails of up to 2 representatives to attend the event. This Preliminary Market Engagement Notice is issued for notification purposes and does not constitute a formal tender or pre-qualification process, nor does it represent a commitment to procure any goods or services. Parties should note participation in pre-market engagement will not influence or provide advantage in any future procurement, and that the scope, services, values, and timelines referenced are indicative only and subject to change.

Notice Details

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Publication & Lifecycle

Open Contracting ID: ocds-h6vhtk-06b96c
Publication Source: Find A Tender Service
Latest Notice: https://www.find-tender.service.gov.uk/Notice/058204-2026
Current Stage: Planning
All Stages: Planning

Procurement Classification

Notice Type: UK2 - Preliminary Market Engagement Notice
Procurement Type: Standard
Procurement Category: Services
Procurement Method: Not Specified
Procurement Method Details: Not specified
Tender Suitability: SME
Awardee Scale: Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

48 - Software package and information systems

72 - IT services: consulting, software development, Internet and support

CPV Codes

48440000 - Financial analysis and accounting software package

72000000 - IT services: consulting, software development, Internet and support

Notice Value(s)

Tender Value: £291,667 £100K-£500K
Lots Value: Not specified
Awards Value: Not specified
Contracts Value: Not specified

Notice Dates

Publication Date: 19 Jun 20265 days ago
Submission Deadline: Not specified
Future Notice Date: 26 Jun 20261 day to go
Award Date: Not specified
Contract Period: 31 Aug 2026 - 31 Mar 2027 6-12 months
Recurrence: Not specified

Notice Status

Tender Status: Planning
Lots Status: Planning
Awards Status: Not Specified
Contracts Status: Not Specified

Buyer & Supplier

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Contracting Authority (Buyer)

Main Buyer: HM REVENUE & CUSTOMS
Contact Name: Available with D3 Tenders Premium →
Contact Email: Available with D3 Tenders Premium →
Contact Phone: Available with D3 Tenders Premium →

Buyer Location

Locality: LONDON
Postcode: SW1A 2BQ
Post Town: South West London
Country: England
Major Region (ITL 1): TLI London
Basic Region (ITL 2): TLI3 Inner London - West
Small Region (ITL 3): TLI35 Westminster and City of London
Delivery Location: Not specified
Local Authority: Westminster
Electoral Ward: St James's
Westminster Constituency: Cities of London and Westminster

Further Information

Notice Documents

https://www.find-tender.service.gov.uk/Notice/058204-2026
19th June 2026 - Preliminary market engagement notice on Find a Tender

Notice URLs

https://www.legislation.gov.uk/ukpga/2023/54/contents

Open Contracting Data Standard (OCDS)

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JSON Markdown

The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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