HMRC has marked a major milestone in its efforts to improve efficiency. The Valuation Office Agency (VOA) – the public sector’s property valuation experts and advisers, which provide the valuations needed to support local taxation and benefits – was assimilated into the department on April 1. This will “improve transparency”, the Treasury said.

The VOA determines rental values to inform benefit payments, including local housing allowance – a way of calculating housing benefit or universal credit for private tenants in the UK, based on the area you live in and your household size – as well as council tax bands and business rates.

Officials added: “The move will improve the experience of taxpayers and businesses, support HMRC’s delivery of the government’s commitment to reform the tax system and is expected to deliver between 5% to 10% of additional savings in Valuation Office administrative costs by the 2028 to 2029 tax year.”

The Government has said it wants to “crack down” on universal credit fraud in order to recoup £1.3billion in overpayments.

Officials said in December that the DWP is set to save the taxpayer £1.5billion by 2029/2030 after being given access to “new data, modern tools and more powers” to investigate fraud and recover money lost to benefit overpayments.

“This is part of Government’s commitment to savings of £14.6 billion up to the end of 2030/31 from fraud, error and debt activity, which includes investment to deploy up to 3,000 additional staff and strengthen our data, analytics and investigative capability,” the DWP added.

On the VOA merger with HMRC, Dan Tomlinson, Exchequer Secretary to the Treasury, said: “We are committed to building a tax system that works for UK businesses and taxpayers, and this integration is a key part of that transformation.

“It will bring the valuations that support property taxes into HMRC’s ambitious programme of modernisation and reform and contribute positively to the government’s Plan for Change.”

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said: “The Valuation Office joins HMRC on our collective journey to improve customer service, modernise the way we work, close the tax gap, and accelerate digitalisation, as part of our Transformation Roadmap.

“During 2025-26, property valuations supported the collection of more than £62 billion in Council Tax and business rates – helping fund the essential public services we all rely on – and this important work now continues within HMRC.

“Bringing together our functions provides greater flexibility and will help to deliver the government’s vision of a transformed tax and customs system that is fit for the future.”