HMRC is set to eliminate paper letters for millions of taxpayers starting in April next year. The tax office aims to transition to a “digital by default” approach to save £50 million annually by 2028/29.
Following an announcement in the recent Budget, HMRC will gradually phase out paper communications beginning in April 2026. Taxpayers will now receive digital correspondence through their HMRC online account or app. However, households without internet access or struggling with digital services will still receive paper letters, and HMRC’s phone lines will remain operational.
Individuals who already use the HMRC app, online Personal Tax Account (PTA), or Business Tax Account (BTA) will be among the first groups impacted. Taxpayers will have the option to continue receiving paper letters if desired.
HMRC will prompt individuals to verify their contact details when the rollout commences, as letters are sent for various purposes such as tax code changes or self-assessment registration. Sole traders and landlords with qualifying income over £50,000 have already received letters to prepare for submitting quarterly updates using HMRC-approved software.
Taxpayers are encouraged to prepare for the transition early, as the rollout begins in April 2026. HMRC emphasizes the importance of acquiring suitable software for tax reporting, with free and paid options available to meet individual business needs.
Craig Ogilvie, the Making Tax Digital director, highlights the importance of early preparation for the upcoming changes in tax procedures. The transition to Making Tax Digital for Income Tax aims to spread tax responsibilities throughout the year, offering real-time tax estimates for better financial planning.
Ensuring a smooth transition, HMRC stresses the need for compatible software that integrates with existing records and meets the new requirements. Taxpayers are advised to explore available software options for efficient tax management under the new system.
