HMRC is set to eliminate paper letters for millions of taxpayers starting in April next year. This move aligns with their initiative to transition to a “digital by default” approach, aiming to achieve annual savings of £50 million by 2028/29.
The recent Budget announcement confirmed that the gradual phasing out of paper communications will commence in April 2026. Going forward, taxpayers will receive digital correspondence through their HMRC online account or the HMRC app. However, households without internet access or facing digital challenges will still receive letters by post, and HMRC’s phone lines will remain operational.
Taxpayers will have the option to continue receiving paper letters if they prefer. Initially, individuals using the HMRC app, online Personal Tax Account (PTA), or Business Tax Account (BTA) will be affected. HMRC will prompt individuals to verify their contact details once the transition begins, as letters are commonly sent out for various reasons such as tax code updates or self-assessment registration requirements.
In a separate development, HMRC disclosed that over 200,000 letters have been issued to sole traders and landlords earning over £50,000, who will soon be required to submit quarterly updates using HMRC-approved software if their income surpasses £50,000 from self-employment or property sources.
While the rollout is scheduled for April 2026, HMRC encourages early preparation for the change. Taxpayers will need suitable software, with both free and paid options available. The software provides real-time tax estimates, aiding in cash flow management and preventing surprises during tax season.
Craig Ogilvie, the Making Tax Digital director, emphasized the importance of preparing for the upcoming changes. He highlighted the benefits of spreading tax obligations throughout the year and mentioned that free software options are accessible, with positive feedback indicating user-friendly experiences.
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