HMRC is set to eliminate paper letters for millions of taxpayers starting in April next year. The tax office had previously announced its intention to transition to a digital-first approach to save £50 million annually by 2028/29.
Following confirmation in the recent Budget announcement, the gradual phasing out of paper communications will commence in April 2026. Going forward, taxpayers will receive digital correspondence through their online HMRC account or the HMRC app. HMRC will still reach out to households without internet access or those facing difficulties with digital services, while maintaining open phone lines.
Individuals will have the option to continue receiving paper letters if they prefer. Those already utilizing the HMRC app, online Personal Tax Account (PTA), or Business Tax Account (BTA) will be among the first impacted groups, according to Which?
HMRC will prompt individuals to verify their contact details when the rollout begins. Letters from HMRC are typically sent for various reasons, such as changes in tax codes or requirements to register for self-assessment.
In related news, HMRC disclosed sending over 200,000 letters to sole traders and landlords earning over £50,000, informing them of the obligation to submit quarterly updates using HMRC-approved software if their turnover surpasses £50,000 from self-employment or property income.
While the rollout starts in April 2026, HMRC advises people to prepare for the change in advance. Taxpayers will need suitable software for compliance, with both free and paid options available. The software will provide real-time tax estimates, aiding in cash flow management and avoiding surprises during tax season.
Craig Ogilvie, the Making Tax Digital director, emphasized the importance of preparing for the new tax system, highlighting the benefits of spreading tax administration throughout the year. Early feedback on the new system indicates its user-friendliness once individuals are familiar with it.
To receive more news updates, consider selecting Daily Mirror as a ‘Preferred Source’ on Google News for convenient access to relevant news content.
