HMRC is set to eliminate paper correspondence for millions of taxpayers starting in April next year. The tax office revealed its intention to transition to a “digital by default” approach earlier this year, aiming to achieve annual savings of £50 million by 2028/29.
During the recent Budget announcement, it was confirmed that the gradual phasing out of paper communications will commence in April 2026. Going forward, individuals will receive digital letters in their HMRC online accounts or via the HMRC app. HMRC will continue to send letters to households without internet access or facing difficulties with digital services, and their phone lines will remain operational.
Taxpayers will have the option to continue receiving paper letters if they prefer. Initially, individuals who already use the HMRC app, online Personal Tax Account (PTA), or Business Tax Account (BTA) will be impacted. HMRC will prompt individuals to verify their contact details when the rollout begins to ensure accuracy.
HMRC has issued over 200,000 letters to sole traders and landlords with qualifying income exceeding £50,000, informing them that they will need to submit quarterly updates using HMRC-approved software if their turnover surpasses £50,000 from self-employment or property income. The rollout is scheduled to start in April 2026, and HMRC advises people to prepare for the transition in advance.
Taxpayers will need suitable software for compliance, with both free and paid options available. HMRC emphasizes the importance of finding software that suits one’s business needs, providing real-time tax bill estimates for effective cash flow management and avoiding surprises in January.
Craig Ogilvie, Making Tax Digital director, emphasized the importance of preparing for the upcoming changes, highlighting the benefits of spreading tax administration tasks throughout the year. Early feedback indicates that the system is user-friendly once individuals become familiar with it, with free software options accessible to users.
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