---
title: "Automating Income Tax Self Assessment Innovation Proof of Concept"
ocid: "ocds-h6vhtk-06b96c"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-06b96c"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-06b96c.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-06b96c.json"
source: "Find A Tender Service"
current_stage: "Planning"
buyer: "HM REVENUE & CUSTOMS"
published: "2026-06-19"
---

# Automating Income Tax Self Assessment Innovation Proof of Concept

Buyer: HM REVENUE & CUSTOMS  
Current stage: Planning  
OCID: ocds-h6vhtk-06b96c

[View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-h6vhtk-06b96c)  
[Download OCDS JSON](https://d3tenders.com/contract/ocds-h6vhtk-06b96c.json)

## Summary

His Majesty's Revenue & Customs (HMRC) is in the planning stage of a procurement titled "Automating Income Tax Self Assessment Innovation Proof of Concept." This initiative seeks to develop and test innovative concepts aimed at automating the tax self-assessment process, thereby simplifying the UK tax system. The procurement falls under the industry categories of IT services and financial analysis, and accounting software packages, to be carried out in London, United Kingdom. The preliminary market engagement event is scheduled for 29th June 2026 via Microsoft Teams, with registration closing on 26th June 2026. This engagement is part of the buyer's effort to gather market insights, with a procurement process that comprises several planned phases: preparation, build, and test and evaluation.

This procurement presents significant opportunities for businesses involved in IT services, fintech, and financial software development. Companies specialising in integrating business systems, data management, and API handling could benefit from collaborating with HMRC to explore solutions that enhance the automation of tax processes. The procurement is suitable for SMEs and offers a chance to showcase innovation in a high-impact public sector environment. Participation in this engagement phase allows businesses to influence future procurement requirements, although it does not provide any advantage in subsequent procurement stages.

## Notice

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.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/058204-2026 |
| 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 |
| All stages | Planning |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 19 Jun 2026 |
| Submission deadline | Not specified |
| Future notice date | 26 Jun 2026 |
| Award date | Not specified |
| Contract period | 31 Aug 2026 - 31 Mar 2027 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £291,667 |
| Lots value | Not specified |
| Awards value | Not specified |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Planning |
| Lots status | Planning |
| Awards status | Not specified |
| Contracts status | Not specified |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | HM REVENUE & CUSTOMS |
| Locality | LONDON |
| Post town | South West London |
| Postcode | SW1A 2BQ |
| Country | England |
| ITL 1 | TLI London |
| ITL 2 | TLI3 Inner London - West |
| ITL 3 | TLI35 Westminster and City of London |
| Local authority | Westminster |
| Electoral ward | St James's |
| Westminster constituency | Cities of London and Westminster |
| Delivery location | Not specified |

## CPV Codes

### Divisions

- 48 - Software package and information systems
- 72 - IT services: consulting, software development, Internet and support

### Codes

- 48440000 - Financial analysis and accounting software package
- 72000000 - IT services: consulting, software development, Internet and support

## Release History

- 19 Jun 2026 at 14:25 - Planning - UK2 - Preliminary Market Engagement Notice - https://www.find-tender.service.gov.uk/Notice/058204-2026

## 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

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-06b96c. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-06b96c.json.