HMRC is set to eliminate paper letters for millions of taxpayers starting in April of the following year. The tax office had previously announced its intention to transition to a “digital by default” approach in a recent update, with the goal of saving £50 million annually by 2028/29.
In the recent Budget announcement, it was confirmed that the gradual phasing out of paper communications by HMRC will commence in April 2026. Going forward, taxpayers will receive digital letters through their HMRC online account or the HMRC app. However, HMRC will continue to communicate via written letters with households lacking internet access or facing difficulties with digital services, while their phone lines will remain open.
Taxpayers who prefer paper correspondence can opt to continue receiving letters. Initially, individuals utilizing the HMRC app, online Personal Tax Account (PTA), or Business Tax Account (BTA) will be the first affected groups.
When the transition begins, HMRC will prompt individuals to verify their contact details to ensure accuracy. HMRC sends letters for various reasons, such as notifying about tax code changes or self-assessment registration requirements.
HMRC disclosed that over 200,000 letters have been dispatched to sole traders and landlords with qualifying income exceeding £50,000, who will soon need to submit quarterly updates using approved software if their turnover surpasses £50,000 from self-employment or property income.
Although the rollout will start in April 2026, HMRC advises people to prepare for the change promptly. Taxpayers will need suitable software, with both free and paid options available. The software provides real-time tax bill estimates throughout the year, aiding in cash flow planning and avoiding surprises in January.
Making Tax Digital director Craig Ogilvie emphasized the importance of preparing for the changing tax landscape, as Making Tax Digital for Income Tax approaches. The system offers free software options, and early testing feedback indicates user-friendliness once familiarized.
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