HMRC is set to eliminate paper letters for millions of taxpayers starting in April next year. This move aligns with HMRC’s initiative to transition to a “digital by default” approach, aiming to save £50 million annually by 2028/29.
The recent Budget announcement confirmed the gradual phasing out of paper correspondences by HMRC, commencing in April 2026. Going forward, taxpayers will receive digital letters through their HMRC online account or the HMRC app. However, households without internet access or facing difficulties with digital services will still receive written correspondence, and HMRC’s phone lines will remain operational.
Taxpayers who currently utilize the HMRC app, online Personal Tax Account (PTA), or Business Tax Account (BTA) will be among the first groups affected. Individuals will have the option to continue receiving paper letters if they prefer.
HMRC will prompt individuals to verify their contact details when the transition begins. The revenue department has already dispatched over 200,000 letters to sole traders and landlords with qualifying income exceeding £50,000, informing them of the requirement to submit quarterly updates using HMRC-approved software for turnovers exceeding £50,000 from self-employment or property income.
Taxpayers are encouraged to prepare for the upcoming changes, with the rollout scheduled to commence in April 2026. HMRC advises individuals to ensure they have suitable software, as real-time tax estimates can aid in cash flow planning and prevent surprises during the tax season. Taxpayers can select from a range of free and paid software options tailored to their business needs.
Craig Ogilvie, Making Tax Digital director, emphasized the importance of preparing for the changes, highlighting the benefits of spreading tax administration throughout the year. Early feedback on the system from testing participants indicates that once familiar with it, the process is straightforward.
Overall, HMRC is gearing up for a significant shift towards digital communications, offering support and guidance to taxpayers as they adapt to the new system.