Building work has begun on HMRC's new £155m city centre headquarters which will house about 9,000 civil servants.
The site in and around Pilgrim Street, Newcastle, is set to be ready by 2027.
Staff will relocate from existing offices in Washington and Longbenton to form the largest of HMRC's 14 regional hubs.
The government agreed a 25-year lease for the site which will become part of the Pilgrim's Quarter development, the Local Democracy Reporting Service said.
Demolition work has been carried out in recent weeks, which has seen the 1970s Commercial Union House building torn down, and the former Stack shipping container village dismantled.
Marc Gill, HMRC's senior leader in Newcastle, said: "Once complete, Pilgrim's Quarter will provide a first-class, modern, digitally enabled workspace for HMRC's largest office, right here in Newcastle.
"HMRC is extremely proud of its history in the North East and we look forward to continuing to provide thousands of high-quality government careers in an iconic location in the heart of Newcastle city centre."
The Pilgrim's Quarter complex - developed by the billionaire Reuben Brothers - will wrap around Pilgrim Street, Market Street, New Bridge Street West and John Dobson Street.
Heritage group Northumberland and Newcastle Society had argued against demolishing the interior of Art Deco building Carliol House, which is part of the development.
Its 1920s façade and dome will be retained and incorporated into the design.
Councillor Alex Hay, cabinet member responsible for economic development, said: "The new North East home for HMRC will house thousands of workers who will contribute to the wider economy of our city and provide a welcome boost to businesses across Newcastle."
Follow BBC North East & Cumbria on Twitter, Facebook and Instagram. Send your story ideas to northeastandcumbria@bbc.co.uk.
Demolition work begins for new HMRC complex
Fears for listed building in developers' sights
HMRC to move 9,000 staff to city centre site
Police cordon in Wallsend LIVE: Ongoing investigation at Coast Road shops
Missing Durham woman on crutches was last seen getting into a grey car
Plea from police as number of assaults on North East officers continues to rise
Boy's dream comes true as cupcake design will be made into real cake
Careless driving, no insurance and fare-dodging – the latest Sunderland court cases
Man jailed for rape and sexual assault
Why Indian farmers are ready for new protests
Migrant death trucker 'unaware air con had failed'
Two Britons charged by pro-Russian rebels - reports
Mother of truck death victims: 'How could this happen?'
Rio's residents garden their way out of hunger
Unique terror trial that changed France
UK women face abortion protests by emboldened campaigners
FBI-wanted Cryptoqueen ‘a Bitcoin billionaire’
What weapons are being supplied to Ukraine?
The country that could be descended from one Viking woman
Elite Russian regiment fights for support and the war for borsch
Ukraine demands seizure of Russian-flagged grain ship
The case for turning off your Zoom camera
Workers may have a strong argument against appearing on screen
America's first interracial love song
How a taboo-busting duet became a hit and broke new ground
A breakfast staple created by accident
More than a century ago, a glut of oranges kick-started a craze
© 2022 BBC. The BBC is not responsible for the content of external sites. Read about our approach to external linking.