In a major shift towards modernising its services, HMRC is set to replace most paper letters with digital communications starting from spring 2026.
This move, part of its ‘digital by default’ strategy, aims to streamline taxpayer interactions, reduce postal costs, and improve security. For millions across the UK, it marks a fundamental change in how tax-related information is delivered and accessed.
In this article, we break down what the transition means, who it affects, and how individuals and businesses can prepare to stay fully informed.
What is HMRC’s ‘Digital By Default’ Communication Strategy?
From spring 2026, HMRC will initiate a major change in how it communicates with taxpayers by introducing a “digital by default” model. This transformation will shift outbound communications, such as tax code notices, reminders, and updates, from traditional postal letters to digital formats delivered through a taxpayer’s Personal Tax Account (PTA) or the HMRC app.
Under this model, users who already interact with HMRC online will receive email or SMS notifications prompting them to log in and access their latest correspondence. These alerts will not contain sensitive information directly but will instead guide users to their secure accounts, helping to maintain data privacy and combat phishing or fraud attempts.
The new approach reflects HMRC’s broader commitment to becoming a digital-first organisation, with a target for 90% of taxpayer interactions to be digital by the 2029-30 tax year.
While the default will be digital, paper communications will still be available to those who need or choose them, particularly the digitally excluded, elderly, or disabled individuals.
When Will the Paper Letters Stop and What’s the Timeline for the Change?
The gradual rollout of HMRC’s digital letter system will begin in spring 2026, aligning with legislative updates outlined in the Finance Bill 2025–26.
From this point forward, taxpayers engaging with HMRC’s digital services will automatically receive communications electronically unless they opt out.
HMRC is adopting a service-by-service implementation model, which means digital correspondence will be introduced only when individual systems and infrastructure are fully prepared. This ensures both the reliability of delivery and the integrity of user data.
To ensure consistency and preparedness, digital rollout will follow internal readiness criteria such as IT stability, accessibility compliance, and adequate support provisions.
Who Will Be Affected by the Switch to Digital Letters From HMRC?
The upcoming switch to digital letters from HMRC will affect a wide range of taxpayers and businesses who use the department’s online services.
The shift to digital communication will primarily impact:
- Individual taxpayers already using HMRC’s online services, including the PTA and HMRC app.
- Businesses are managing their tax affairs digitally via Business Tax Accounts (BTA).
- New customers who engage digitally with HMRC for the first time after the rollout begins.
Anyone accessing HMRC services online will be prompted to provide or confirm their digital contact details (email and mobile number).
Once these are verified, postal letters will no longer be issued by default. Importantly, those who do not provide or confirm these details will continue to receive paper correspondence.
How Will Taxpayers Receive HMRC Digital Communications?
Digital communication from HMRC will involve notifications, rather than the direct delivery of tax letters via email. When a new message is available in the taxpayer’s account, an alert will be sent through email or SMS, instructing the user to log in to their account or app.
These alerts will include personalisation, such as the taxpayer’s full name and the HMRC logo, but will never request sensitive data or financial details directly. This structure supports security while promoting self-service access to important documents.
The table below compares how communications will work under the new digital model:
| Aspect | Digital Communication | Postal Letters |
| Delivery Speed | Instant email/SMS alert | 2–5 working days |
| Access | Via secure HMRC account or app | Physical letter to home address |
| Data Protection | Encrypted access, no sensitive content in alert | Potential risk if mail intercepted |
| Scam Risk | Lower, as no direct links in alerts | Moderate, easier to replicate physical forms |
| Paper Usage & Environment | None | Significant |
Can You Still Receive Paper Letters from HMRC?
Yes, paper letters will not be eliminated entirely. Recognising that digital access is not universal, HMRC will provide a straightforward opt-out mechanism.
This ensures that people who are unable or unwilling to engage online can still receive essential correspondence via post. To opt out, users simply need to avoid confirming their digital contact details when prompted.
Those already identified as digitally excluded, such as some older adults, individuals with disabilities, or those in areas with limited internet access, will automatically continue on a paper-based communication route.
What are the Benefits of HMRC’s Digital Communication Approach?
The advantages of HMRC’s digital transformation are both financial and practical. For the government, the shift is projected to save approximately £50 million annually in postage and printing costs. But the benefits also extend to taxpayers.
Improved speed and convenience
Digital delivery significantly reduces the time it takes to receive important documents. Email alerts arrive instantly, allowing for faster action and more efficient tax management. All documents remain archived in the user’s tax account, reducing paperwork and simplifying access.
Enhanced security and fraud prevention
Digital delivery limits the chance of physical mail being intercepted or lost. By keeping all documents within a secure portal, HMRC mitigates common fraud scenarios, particularly those involving phishing or impersonation via fake postal letters.
Support for a greener government
Reducing paper consumption and postal logistics aligns with broader environmental goals. The move supports sustainability by decreasing reliance on non-digital infrastructure.
What Are the Concerns or Risks Associated with This Digital Shift?
While moving to digital letters offers convenience, several concerns must be addressed to ensure the transition is inclusive and effective.
Key risks include:
- Digital exclusion: Not everyone is comfortable using apps or online accounts, particularly elderly or vulnerable individuals, which may create barriers to essential updates.
- Data security: With more sensitive tax information online, robust IT systems and strong cyber protections are critical to prevent breaches.
- Clarity of communication: If digital letters mirror confusing language from traditional letters, they may not improve understanding; plain, actionable language is essential.
Addressing these challenges is vital for HMRC to deliver a secure, accessible, and user-friendly digital communication system that works for all taxpayers.
What Should Individuals and Businesses Do to Prepare for HMRC Digital Letters?
Preparing for HMRC’s digital shift doesn’t require major effort but involves taking proactive steps to ensure continued access to important tax updates.
For Individuals:
- Download the HMRC app: Available on iOS and Android, it allows secure and easy access to your account.
- Update contact information: Ensure your email and mobile number are correct in your Personal Tax Account.
- Check digital preferences: Review account settings and opt into paperless updates where appropriate.
- Stay alert for scams: HMRC will never send sensitive information directly via email or text. Always use the official app or website.
For Businesses:
- Confirm digital contact details: Make sure your Business Tax Account (BTA) is up to date.
- Monitor notifications: Regularly check the HMRC app or online dashboard for updates and deadlines.
- Consult a tax adviser: Seek professional guidance if unsure about your digital settings or compliance requirements.
Following these steps ensures both individuals and businesses remain informed and prepared for the digital-first communication model.
What Features Does the HMRC App Offer to Support Digital Communication?
The HMRC app offers a user-friendly and secure platform for managing tax affairs. Here are the key features that will support the digital communication model:
- Notifications: Get alerts when new letters or updates are available.
- Secure access: Use biometric login or PIN for quick and safe access.
- Tax overview: Check your tax code, income history, and National Insurance contributions.
- Payments: Make secure payments, view upcoming deadlines, and manage self-assessment details.
- Updates and queries: Update your address, request refunds, or contact HMRC directly from the app.
With these features, the HMRC app ensures that managing your tax affairs digitally is faster, more secure, and far more convenient than relying on traditional postal communication.
Comparison of Functionalities:
| Feature | HMRC App | Postal Communication |
| Instant access to documents | Yes | No |
| Set reminders for deadlines | Yes | No |
| Update personal details | Yes | Requires physical form |
| Payment through Open Banking | Yes | No |
| Track submission progress | Yes | No |
The app not only streamlines communication but also gives users more control and transparency over their tax-related activities.
How Will HMRC Ensure No One is Left Behind in This Digital Transition?
HMRC recognises the risk of excluding vulnerable groups. To address this, several safeguards are being put in place:
- Opt-out options for individuals who do not wish to or cannot use digital services.
- Continued investment in accessible paper-based communications to maintain equal service standards.
- Ongoing stakeholder engagement and feedback loops to monitor the effectiveness of the rollout.
- Planned equalities assessments to ensure that services meet the needs of people with disabilities or limited digital access.
These safeguards are part of HMRC’s commitment to delivering a communication experience that is not only modern but also inclusive.
Why is This Change Important for the Future of UK Tax Administration?
The digitisation of outbound communication supports a broader transformation in public services. HMRC is one of the UK’s largest revenue-generating bodies, and its modernisation sets a precedent for other government agencies.
Digital communication enables:
- Faster taxpayer engagement
- Reduced bureaucracy
- Streamlined self-service
- Cost-effective operations
- Greater transparency and accountability
It also aligns with HMRC’s long-term goal of becoming a fully digital-by-default organisation by the end of the decade.
Final Thoughts – Is the UK Ready for HMRC’s Paperless Tax Era?
The digital shift is both necessary and inevitable. It promises long-term benefits for taxpayers and HMRC alike. However, the success of this transition will depend on how well HMRC supports all users, especially those who are not naturally inclined to engage with digital tools.
With the right infrastructure, clear communication, and inclusive design, this change could redefine the future of tax correspondence in the UK. But it must be handled with care, precision, and a continued focus on accessibility and trust.
Frequently Asked Questions
What happens if I ignore HMRC’s request to confirm my contact details?
You’ll continue to receive paper letters by default, but you may miss out on faster digital communication options if you don’t respond.
Will digital letters include attachments or downloadable PDFs?
No, digital letters will be viewable within your tax account or app. Alerts will simply prompt you to log in securely.
Can businesses opt out of digital communication?
Yes, businesses can opt out, though most are already using HMRC’s online services and may see limited benefit from paper communications.
Are all types of HMRC letters going digital?
Only services ready for digital correspondence will switch in 2026. Some communications may remain paper-based during the initial rollout.
Will I be notified when my tax code changes?
Yes, you’ll receive a notification via email or SMS that prompts you to view the update in your digital account.
Do I need a Government Gateway ID for the HMRC app?
Yes, you need a valid Government Gateway login to access your Personal Tax Account via the HMRC app.
What if I lose access to my email or phone number?
You should update your contact details in your tax account as soon as possible to ensure you continue receiving notifications.
