HM Revenue & Customs (HMRC) is to stop sending letters to taxpayers in a cost-cutting drive that will save £50m
Nobody likes the brown envelopes, even us accountants!
The tax office will “eliminate” all outbound post except letters that generate revenue such as tax demands, the Government confirmed in its spending review on Wednesday.
Tax advisers raised concerns that taxpayers could miss out on important communications if the majority of letters were wiped out.
Antonia Stokes, of the Low Incomes Tax Reform Group, said: “HMRC’s plan to virtually eliminate all outgoing post will need to be handled carefully, with clear safeguards in place for those customers who are digitally excluded or lack digital confidence.
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“If important correspondence is delivered to online accounts which taxpayers are not able to access, it could lead to tax obligations being missed, taxpayer confusion and ultimately an erosion of trust in HMRC.
It's important HMRC proceed cautiosly.
The cost-cutting would reduce the number of letters HMRC sends by 75pc documents said, but letters for “digitally excluded customers” would continue.
A taxpayer can receive an HMRC letter for many different reasons – for example, because they are suspected of underpaying tax, because they need to register for self-assessment or because their tax code has changed.
We welcome removing the annual letter ' A requirement to file a tax return ' when taxpayer already in system.
