From spring 2026, HMRC will begin phasing out automatically posted letters and replacing them with digital communications. Email alerts will notify taxpayers that new documents are available in their personal tax account or the HMRC app. The department aims to cut print and postage spending by £50 million a year by 2028/29 and bring taxpayer communication into a fully modernised digital environment.
The move forms part of HMRC’s wider digital by default programme. The Government confirmed in the Budget that it has approved HMRC’s long-term plan for 90% of taxpayer interactions to take place online, or through digital channels only, by the 2029/30 tax year.
Who will move to digital first
HMRC will begin with taxpayers who already use online services. Anyone logging into the HMRC app or their personal tax account will be asked to provide or confirm digital contact details, such as an email address or mobile number. Once this information is supplied, HMRC will issue email notifications when new correspondence is added to the individual’s online account, rather than sending a posted letter.
Taxpayers who do not use HMRC’s digital services will continue to receive paper correspondence unless they choose to engage online. HMRC has stressed that digitally excluded individuals and those who wish to opt out will still be able to request letters by post. The transition will be gradual, starting in April 2026, with additional services being added as the underlying systems become ready.
Despite the scale of the overhaul, Treasury estimates show no expected uplift in tax receipts. HMRC acknowledges that many services are not yet fully digital, so the shift will take several years to complete.
The legal and operational changes coming
To support the rollout, the Finance Bill 2025/26 will amend legislation governing HMRC’s use of electronic communications, including provisions in sections 132 of the Finance Act 1999 and section 135 of the Finance Act 2002. These changes will allow HMRC to require digital contact details at set interaction points, such as annual tax filing.
Under the proposed rules, HMRC will use email addresses and mobile numbers collected to send alerts for all types of correspondence hosted in a taxpayer’s online account. This will include compliance letters, penalty notices, assessments, and personal closure notices. The communications themselves will remain in the secure HMRC system rather than being delivered directly by email.
Security remains a key concern. Last year’s data breach, affecting tens of thousands of personal tax accounts, has heightened scrutiny, and HMRC has stated that safeguarding user data will be central to the programme.
Implications for taxpayers and advisers
HMRC argues the changes will free up advisers to support people with more complex needs. However, tax professionals are already raising concerns about missed notifications and the risk that taxpayers will overlook time-sensitive digital letters.
The equality impact assessment highlights that older taxpayers and people with specific disabilities are more likely to rely on paper and may be disproportionately affected. HMRC states that it will provide a straightforward opt-out process and continue to offer non-digital support for those who require it.
Reaching the programme’s 90% digital target by 2030 depends heavily on wider uptake of personal tax accounts and the HMRC app. Large groups of taxpayers, including pensioners facing new liabilities as the state pension nears the basic rate threshold, may prove challenging to shift online. At the same time, some areas of the system, such as inheritance tax reporting, still rely almost entirely on paper forms and require urgent modernisation.
HMRC has until 2029/30 to rebuild systems, collect digital contact details, and replace the bulk of printed letters. The legislative powers for this shift are expected to take effect once the Finance Bill 2025/26 receives Royal Assent, which is likely to occur in July 2026. Whether the department can deliver a truly digital-first communication model within four years remains an open question.
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