HMRC is set to stop sending letters to taxpayers, unless they generate revenue for them, in a bid to save £50m by the end of this Parliament.
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.
The Government said it is also providing an additional £1.6bn to the department from 2026-27 to 2028-29 to modernise and reform its IT and data infrastructure as a part of its mission to make things more digital.
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.
At the time, The i Paper was told that taxpayers have to submit new self-assessment repayment requests online or via the post, rather than by using the telephone or through its webchat.
It’s unclear now in what form people who physically send in enquiries will get a response.
Tax experts raised concerns for those who cannot use emails or apps who could miss out on communications if letters were wiped out.
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.
“However, HMRC must ensure that people who cannot use emails or apps are not left behind by the rush online.
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“We also have to hope that these proposals mean that HMRC will finally accept emails as a matter of routine.”
A taxpayer can receive a letter from HMRC for many different reasons, including because they are suspected of underpaying tax, because they need to register for self-assessment or because their tax code has changed.
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”.
She added: “£50m in savings is a strong incentive, but trust in the tax system depends on communication being timely, clear, and equitable.
“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.”
In recent months, HMRC has come under fire for bad customer service, taking months to respond to letters, and complaints that its call hold times have increased.
Clare Marsh, founder of accountancy firm Her Business Counts Limited, said there could be a silver lining to this.
Speaking to The i Paper, she said: “On the one hand, the fewer of these letters coming through the door, where often it’s just a blanket letter sent to everyone, has to be a good thing, less stress for the individual and less waste of our money and HMRC’s time.
“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.
“This is particularly timely given the change in approach to the winter fuel payment for the elderly.”
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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