Editorial

HMRC enlists SAP for overhaul of the UK tax system

The tech firm will lead a major modernisation programme at HMRC aimed at upgrading core tax platforms and improving digital services for millions of taxpayers.

Posted 3 February 2026 by Christine Horton


HMRC has announced what it is calling a “major technology transformation” of the UK tax system.

It has selected SAP to move its Enterprise Tax Management Platform (ETMP) to the cloud. The technology backbone of HMRC’s tax accounting and payment capability, ETMP supports over 45 tax regimes and is used daily by tens of thousands of staff to manage more than £800 billion in tax revenue each year.

By moving to the cloud with RISE with SAP, HMRC said it will replace its legacy systems and simplify its technology landscape. It will also give HMRC employees better access to analytical data and an improved user interface, “which will provide greater confidence in the real time analysis and reporting.”

The platform will also support a more responsive and transparent experience for taxpayers, it said in a statement.

As part of its RISE with SAP deployment, HMRC will implement SAP S/4HANA Cloud, SAP’s UK Sovereign Cloud, SAP Business Technology Platform and SAP AI Capabilities.

SAP said the launch of its UK sovereign cloud capabilities gives organisations access to locally hosted cloud services designed to meet national data residency, security and compliance requirements. 

“Large-scale public systems like those delivered by HMRC must operate reliably at national scale while adapting to changing demands”, said Leila Romane, managing director UKI at SAP. “By modernising one of the UK’s most important platforms and hosting it on a UK sovereign cloud, we are helping to strengthen the resilience, security and sustainability of critical national infrastructure.”

The deal also supports the government’s broader AI ambitions, according to SAP. Together, with HMRC it will work on defining new AI capabilities “aimed at improving taxpayer experiences, surfacing insights faster, automating processes and enhancing decision-making across tax administration.”

Event Logo

If you are interested in this article, why not register to attend our Think Digital Government conference, where digital leaders tackle the most pressing issues facing government today.


Register Now