Millions of taxpayers across the UK will no longer receive paper letters from HM Revenue and Customs (HMRC) as the department begins a major shift to digital communication. The phase-out of traditional postal correspondence is set to start in April 2026, marking a significant step in the government's plan to modernise the tax system.
The Digital-by-Default Strategy
The tax office first unveiled its intention to adopt a 'digital by default' approach earlier this year. This initiative is a core part of a broader efficiency drive, aiming to save the Treasury an estimated £50 million annually by the 2028/29 financial year. The confirmation of the April 2026 start date was provided in last month's Budget announcement.
Under the new system, notifications and letters – such as alerts about tax code changes or reminders to register for self-assessment – will be delivered directly to an individual's online Personal Tax Account (PTA) or Business Tax Account (BTA), or via the official HMRC app. The department has stressed that it will continue to support vulnerable groups, including households without internet access or those who struggle with digital services, by maintaining paper correspondence for them. Phone lines will also remain operational.
Who Will Be Affected First and How to Prepare
The initial rollout will focus on taxpayers who are already digitally engaged. According to consumer champion Which?, the first groups to make the switch will be those who currently use the HMRC app, their online PTA, or BTA. When the change begins, HMRC will prompt these users to confirm their contact details are up to date.
HMRC is urging people to start preparing now for the wider Making Tax Digital (MTD) for Income Tax initiative, which dovetails with this digital shift. From April 2026, sole traders and landlords with a qualifying income over £50,000 will need to submit quarterly updates using HMRC-approved software. The department has already issued over 200,000 letters to individuals who will fall under this new requirement.
"It will give you the chance to get comfortable with the new system before it becomes mandatory and access to our dedicated support team - essentially a safety net while you learn the ropes," an HMRC spokesperson said.
Software and Support for the Transition
A key component of the move is the requirement for compatible software. HMRC has assured that both free and paid options will be available. "There isn't a one size fits all - the key is finding which software works for your business," the department explained. "The software will give you real-time estimates of your tax bill throughout the year, helping with cash flow planning and avoiding nasty January surprises."
For those already using spreadsheets or accounting packages, bridging software can connect existing records to meet the new MTD standards. Craig Ogilvie, Making Tax Digital director, emphasised the benefits: "MTD is about spreading your tax admin throughout the year instead of that January scramble to complete your Self Assessment return. There are free software options available, and early feedback from our testing participants shows the system is straightforward once you are familiar with it."
Crucially, the tax office has confirmed that any taxpayer who prefers to receive paper letters will retain the right to opt out of the digital system and continue receiving postal communications.
