HMRC chooses cloud SAP S/4Hana for tax system overhaul
HM Income & Customs (HMRC) has chosen SAP S/4Hana within the cloud, utilizing the provider’s Rise pathway, for an overhaul of its core tax and income programs.
The UK authorities division is shifting from an SAP on-premise enterprise useful resource planning (ERP) system to the provider’s newer ERP, within the cloud, adopting the “Rise with SAP” programme to assist the modernisation of its Enterprise Tax Administration Platform (ETMP), in line with SAP.
SAP acknowledged it will give HMRC workers larger confidence in real-time evaluation and reporting, whereas additionally supporting a extra responsive and clear expertise for taxpayers.
The deal can be mentioned to assist the federal government’s synthetic intelligence (AI) ambitions and “being hosted on SAP’s UK sovereign cloud supplies a localised answer that creates a basis for future innovation”.
As a Rise programme buyer, HMRC was flagged in SAP’s most up-to-date earnings assertion, launched final week, alongside Adidas, H&M Group and Weir Group, that are additionally on the programme.
Rise is aimed toward shifting clients to the cloud and to make use of SAP’s ERP system, S/4Hana, based mostly on its in-memory Hana database. Rise was launched as a “enterprise transformation-as-a-service” programme in 2021.
SAP described ETMP as “the strategic expertise spine of HMRC’s tax accounting and fee functionality”. It helps over 45 tax regimes and is used each day by tens of 1000’s of workers to handle over £800bn in tax income every year.
HMRC is a long-time SAP buyer. It has been creating and utilizing its SAP-based ETMP since 2004. The platform was constructed on SAP ECC 6.0, which SAP will cease supporting in 2027. The division established an ETMP Regeneration Programme in 2023, which proposed migrating to S/4Hana after a pilot undertaking. Signal-off was authorized in January 2025 by Jim Harra, chief govt of HMRC.
SAP mentioned that by shifting to the cloud with Rise with SAP, HMRC will substitute its legacy programs and simplify its expertise panorama. As a part of the deployment, HMRC will implement SAP S/4Hana Cloud, SAP’s UK Sovereign Cloud, SAP Enterprise Know-how Platform and SAP AI Capabilities.
Leila Romane, managing director for the UK and Eire at SAP, mentioned: “Giant-scale public programs like these delivered by HMRC should function reliably at nationwide scale whereas adapting to altering calls for.
“By modernising one of many UK’s most essential platforms and internet hosting it on a UK sovereign cloud, we’re serving to to strengthen the resilience, safety and sustainability of vital nationwide infrastructure.”
SAP claimed it will work with HMRC to outline new AI capabilities aimed toward bettering taxpayer experiences, surfacing insights sooner, automating processes and enhancing decision-making throughout tax administration.
HMRC additionally went out to tender for a buyer relationship administration (CRM) system in April 2025, value as much as £1bn, in addition to a contact centre-as-a-service (CCaS) supplier, with an estimated contract worth of £500m. Estimated contract dates for the CRM system had been 2 February 2026 to 1 February 2036, as of two June 2025.
