In the spending review document, published on Wednesday, the tax office said it will “eliminate” all outbound post except letters such as tax demands, reducing the number of letters it sends by 75 per cent.
It comes just months after HMRC put a block on allowing taxpayers to use the phone to try to request self-assessment repayments due to an increase in suspected fraudulent activity.
It’s unclear now in what form people who physically send in enquiries will get a response.
Andrew Parkes, technical director at Andersen LLP, said: “This is a continuance of HMRC’s mission to drive as much contact with them online as possible because it is the cheapest way of delivering their service.
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“We also have to hope that these proposals mean that HMRC will finally accept emails as a matter of routine.”
Rachel Harris, accountant and financial expert at striveX, said the change could “increase confusion, non-compliance, and missed deadlines potentially leading to penalties through no fault of their own”.
“This change must be implemented with safeguards in place, including improved digital guidance, robust support for digitally excluded individuals, and a clear strategy for handling critical correspondence across all taxpayer groups.”
Clare Marsh, founder of accountancy firm Her Business Counts Limited, said there could be a silver lining to this.
“However, it needs careful roll out and, as a blanket policy, I don’t think it works. I’d like to see clear guidance on how we won’t end up with people being digitally excluded and ending up with fines or not obtaining rebates to which they are entitled.
An HMRC spokesperson said: “Reducing the number of letters we send and communicating in different ways instead will provide a better service for our customers in line with modern-day expectations, as well as deliver savings of £50m by 2028-29.
“The Government is providing an additional £500m in funding to make HMRC a digital-first organisation.”
What you can do to stay on top of things
If HMRC no longer sends letters, people will need to be much more careful.
The best thing to do is log in to your online HMRC account regularly – every few months – to ensure you don’t miss something important like a payment deadline or a notice about your taxes.
If you don’t have an online account yet, now would be a good time to set one up. It’s the only place you’ll see official messages once the letters stop.
It would also be a good idea to make sure that HMRC has your correct phone number and email address.
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