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HMRC to End Most Postal Letters in £50m Cost-Cutting Shift

Government has allocated £1.6bn for IT reforms through 2028-29 to modernise HMRC’s digital services

Overview

  • HMRC will stop sending about 75% of outbound postal letters by the end of this Parliament and keep only revenue-driven notices
  • The change is projected to save £50m and supports a goal of moving 90% of taxpayer interactions online
  • An extra £1.6bn funding package from 2026-27 to 2028-29 will overhaul HMRC’s IT and data infrastructure
  • Tax experts warn that customers without reliable internet access or digital skills risk missing critical communications
  • Criticism of HMRC’s long response times and call hold waits underscores the need for safeguards during the digital transition