HMRC is set to eliminate paper correspondence for millions of taxpayers starting in April next year. The tax office previously announced a shift to a “digital by default” approach to save £50 million annually by 2028/29.
Following the Budget announcement last month, the gradual phasing out of paper communications by HMRC will commence in April 2026. Moving forward, taxpayers will receive digital letters through their HMRC online account or the HMRC app.
HMRC will continue to send letters to households without internet access or facing digital service challenges, with phone support remaining available. Taxpayers who currently use the HMRC app, online Personal Tax Account (PTA), or Business Tax Account (BTA) will be among the first groups affected.
Taxpayers 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, as letters are sent out for various reasons, such as tax code changes or self-assessment registration requirements.
In a recent update, HMRC disclosed sending over 200,000 letters to sole traders and landlords with qualifying income over £50,000. These individuals will soon need to submit quarterly updates using HMRC-approved software if their turnover exceeds £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, with both free and paid options available. The software will provide real-time tax estimates, aiding in cash flow planning and preventing surprises.
Craig Ogilvie, the Making Tax Digital director, emphasized the importance of preparing for the upcoming changes. With Making Tax Digital for Income Tax approaching, early preparation is crucial to avoid last-minute tax filing stress. Free software options are accessible, and user feedback indicates a straightforward system once familiarized.
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