UK’s His Majesty’s Revenue and Customs (HMRC) department has revealed intentions to stop sending correspondence to taxpayers unless it directly results in revenue, with the goal of saving £50m ($67m) by the conclusion of the current Parliament.
The tax authority plans to cut outbound letters by 75%, concentrating solely on crucial communications such as tax demands.
In a spending review document published on Wednesday, HMRC detailed its approach to eliminate the majority of outbound mail.
The Government is also providing an extra £1.6bn to the department from 2026-27 to 2028-29 to upgrade its IT and data systems, encouraging a transition towards digital communication.
This move follows a recent restriction on phone requests for self-assessment refunds, introduced due to an increase in suspected fraudulent activities.
Taxpayers are now required to submit refund requests online or by post, limiting options for those who favour traditional methods of communication.
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By GlobalDataExperts in taxation have expressed concerns regarding individuals who may find digital communication challenging.
The possible removal of letters could leave some taxpayers without essential information, particularly those who are unable to utilise emails or applications.
Taxpayers generally receive correspondence from HMRC for various reasons, including suspicions of underpayment, the need to register for self-assessment, or alterations to their tax code.
Recent criticisms of HMRC have pointed out problems with customer service, including lengthy response times to letters and increased waiting times on calls.
