HMRC has announced a major change for all taxpayers in a shake-up.
The taxman has plans to scrap all outgoing letters to households, except ones that generate revenue such as tax demands.
HMRC is stopping outbound post for customers.[/caption]
You can receive a letter from HMRC for a number of reasons, including if you are underpaying on tax or if you need to register for self-assessment.
The Government confirmed the change in its spending review on Wednesday June 11.
It is hoped the move will reduce the number of letters HMRC sends by 75% and save £50million a year by 2028‑29.
Households who do not have easy access to internet or struggle with technology will still receive letters.
Meanwhile, phone lines will also remain open for those who need to speak about any queries.
However, there are fears from tax experts that those who are less tech savvy could miss out on important updates from HRMC.
Alice Haine, personal finance analyst said the move risks leaving those with no digital skills in the “dark”.
She said: “The decision raises the risk that people miss key correspondence, or worse, mishandle their tax affairs – something that could lead to fines if they fail to fulfill their obligations.”
“While the lack of physical mail some might persuade some to solve any stumbling blocks themselves through online support services, others might find these mediums difficult to navigate or totally inaccessible.”
An HMRC spokesperson told The Sun it will be communicating with taxpayers in “different ways instead” and provide a “better service” for customers.
They said : “The government is providing an additional £500million in funding to make HMRC a digital-first organisation.”
It comes as part plans to prioritise digital operations at HMRC.
Households can already download the HMRC app which gives access to your tax, National Insurance and benefits.
Users can also make a Self Assessment payment and claim a refund if you have paid too much tax.
These tasks can also be carried out online via the Gov.uk website, but the option to submit it through the post remains.
USING HMRC APP
The HMRC allows users to get information about tax, National Insurance and benefits.
You can use it to check your:
- tax code
- National Insurance number
- income and benefits
- employment and income history from the previous 5 years
- Unique Taxpayer Reference (UTR) for Self Assessment
- Self Assessment tax and how much you owe
- Child Benefit
- State Pension forecast
- gaps in National Insurance contributions
You can also use it to:
- get an estimate of the tax you need to pay
- make a Self Assessment payment
- make a Simple Assessment payment
- set a reminder to make a Self Assessment payment
- access your Help to Save account
- use our tax calculator to work out your take home pay after Income Tax and National Insurance deductions
- track forms and letters you have sent to us
- claim a refund if you have paid too much tax
- ask HMRC’s digital assistant for help and information
- update your name
- update your address
- save your National Insurance number to your digital wallet
- check for gaps in your National Insurance contributions and the benefits of paying them
- check if you can make a payment for gaps in your National Insurance contributions
- choose to be contacted by HMRC electronically, instead of by letter
- How to access the app
- Open the app and enter your Government Gateway user ID and password to sign in for the first time. If you do not have a user ID, you can create one via the app.
