HMRC is set to eliminate paper correspondence for millions of taxpayers starting in April next year. The tax office had previously announced intentions to transition to a “digital by default” approach to save £50 million annually by 2028/29.
In the recent Budget announcement, HMRC confirmed that the gradual phasing out of paper communications will commence in April 2026. Going forward, taxpayers will receive digital letters through their HMRC online account or the HMRC app.
HMRC will still communicate via post with households that lack internet access or face challenges using digital services. Phone lines will also remain operational. Taxpayers who currently utilize the HMRC app, online Personal Tax Account (PTA), or Business Tax Account (BTA) will be the initial groups affected by the change.
When the transition begins, HMRC will prompt individuals to verify their contact details for accuracy. The tax office sends letters for various reasons, such as notifying taxpayers of changing tax codes or the need to register for self-assessment.
HMRC has already dispatched over 200,000 letters to sole traders and landlords with income exceeding £50,000, informing them that quarterly updates using HMRC-approved software will be mandatory if their turnover surpasses £50,000 from self-employment or property income.
Although the rollout starts in April 2026, HMRC advises people to prepare for the shift now. Taxpayers will need appropriate software for compliance, with free and paid options available. The software provides real-time tax bill estimates, aiding in cash flow management and preventing surprises in January.
According to HMRC, taxpayers should select software that suits their business needs, offering seamless integration with existing records and meeting the new requirements. Making Tax Digital director Craig Ogilvie emphasizes the importance of preparing for the upcoming changes, highlighting the benefits of spreading tax admin tasks throughout the year.
Under the Making Tax Digital initiative, free software options exist, and early test feedback indicates that once users are familiar with the system, it is straightforward to navigate.