HMRC to slash physical post – unless you owe them money

HM Reseenue & Customs is to reduce the number of material letters that you send significantly, announcing plans to get rid of most external publications-what has not generated revenue directly-as part of the broader shift to the first digital communications.

This step is expected to reduce spending on Wednesday, from post-HMRC production by 75 % by 2028-29, and providing 50 million pounds annually.

Tax drivers will continue to receive messages about unpaid taxes or compliance problems, but most other correspondence, including updates and public notifications, will be transferred online.

The government said the change was an essential step towards making HMRC a “first digital organization”, where at least 90 % of customer interactions are dealt with online in the coming years.

Tax professionals have expressed concern that this shift can alienate vulnerable customers. Lindsay Scott, spokeswoman for the Ciot Legal Institute (CIOT), has warned of “more risks than customer service” unless guarantees are provided.

“Plans to gradually get rid of post should be dealt with,” Scott said. “About seven million people in the UK still need help to move in digital services, and they cannot be simply left.”

Despite HMRC reports that 70 % of customer reactions are now digitally dealt with, many taxpayers still depend on paper. Last year alone, more than 300,000 tax declarations were made using traditional paper forms.

The move comes after widespread criticism of the previous digitization efforts in HMRC. The eight -year digital tax making initiative was running behind the schedule and more than one billion pounds went on the budget, according to the National Audit Office.

Digital services under pressure

While HMRC slows the web and online systems, industry polls indicate that taxpayers are still frustrated. According to a report issued by CIOT and the Institute of Public Accountants in England and Wales (ICAEW):
• HMRC web service is less than half the time
• Satisfaction with Webchat was only 28 %
• Satisfaction with phone services reached 56 %, with average waiting times 23 minutes
• 34 % of callers surrendered before contact – more than twice the goal of the section by 15 %

The new financing package also includes 1.6 billion pounds over four years to repair the infrastructure of technology and data in HMRC, as well as 500 million pounds aimed at enhancing online service performance.

Fix the pressure on revenue

Digital transformation is part of a wider batch by the cabinet to increase tax receipts without raising prices. The government estimates that the changes, along with 7900 employees of compliance and debt recovery, will bring 7.5 billion pounds per year by 2029-30.

A HMRC spokesman said: “Reducing the number of messages we send and communicate in different ways instead, will provide better service to our customers in line with the expectations of the modern era, in addition to providing savings of 50 million pounds by 2028-29.”

However, critics say that he says that the participation that has been generated in revenue-such as tax bills-will remain unpline, while gradually eliminating useful or explanatory messages.

A tax consultant said: “Hmrc seems only to write when he is chasing you for money.”

With an escalation of pressure to increase tax revenues with the improvement of the service, the success of the first HMRC’s digital ambitions may depend on whether the most vulnerable customers are kept in the episode-or simply left behind.