Policy paper

Modernising digital outbound communications

Published 26 November 2025

Who is likely to be affected

This measure will affect individuals and businesses who currently interact with HMRC digitally but have not proactively consented to receive digital correspondence from HMRC.

General description of the measure

This measure will support HMRC to modernise how it communicates with customers by enabling outbound communications to be delivered ‘digitally by default’. This means customers who engage digitally with HMRC will receive digital communications unless they actively opt out of digital communication.

To support this shift, HMRC will begin collecting more digital contact details — such as email addresses — when customers engage digitally with HMRC, for example when filing a tax return. These details will help HMRC stay in touch with customers about a wide range of tax matters.

For customers, this means they will be notified promptly when new correspondence is available in their digital tax account, helping them stay informed and take timely action. It reduces the risk of missing important updates, simplifies record-keeping, and allows customers to manage their tax affairs with greater confidence and control. This will support a more personalised experience, with communications that are clearer, faster, and easier to access.

The change will give HMRC flexibility to roll out digital communications gradually, only when different services and IT systems become ready.

HMRC recognises that not all customers find digital channels easier or more convenient and will continue to consider the needs of those who choose paper-based communication such as the digitally excluded population. HMRC will also ensure paper services are on a par with digital versions by being accessible and meeting the same standards of clarity.

Policy objective

The objective of this measure is to support HMRC’s commitment to modernise customer communications by shifting from paper-based correspondence to digital formats. It aligns with HMRC’s broader ambition to become a digital-first organisation by transforming public services and delivering a simpler, more efficient and modern tax system.

By making digital communication the default, HMRC will be able to contact customers securely and promptly, while reducing reliance on paper. This enhances customer experience through faster, clearer digital interactions. It supports HMRC’s ambition to ensure that at least 90% of customer interactions are digital by 2029 to 2030. The measure also improves access to information by ensuring customers can view correspondence through HMRC’s online services whenever they need to. Paper communications will continue to be available for customers who choose not to engage with us digitally and who are digitally excluded.

Background to the measure

The measure to digitise HMRC’s outbound communication was first announced in the Tax Update Spring 2025, as part of wider commitments to simplify tax administration and improve customer service. At the Spending Review on 11 June 2025 the government committed to deliver £50 million annual savings in print and postage from HMRC’s budget by 2028 to 2029. This legislation is a key enabler to HMRC delivering on that commitment.

Detailed proposal

Operative date

This measure will have effect on and after the date of Royal Assent to Finance Bill 2025-26. From this date, HMRC will be able to implement a Digital by Default model for outbound communications with customers, which will be subject to the different tax services being ready.

Current law

This measure will amend current law governing HMRC’s use of electronic communications. It is found in sections 132 of Finance Act 1999 and 135 of the Finance Act 2002.

Proposed revisions

The revised legislation will enable:

• HMRC to deliver outbound correspondence digitally by default, unless the customer actively chooses to opt out and into paper.

• HMRC to place a statutory requirement for customers using HMRC’s digital services to provide valid digital contact details (for example, email address or mobile number) at designated interaction points, such as annual filing of taxes. These details will be used to notify customers of new correspondence across HMRC’s services regardless of the specific tax matter. This will not affect customers who are digitally excluded or who choose to opt out. They will continue to receive paper correspondence and will not be required to provide digital contact details

• Most customers will use digital services to manage their tax affairs. They must provide digital contact details. If these details are missing or invalid, they won’t be able to complete the online service and will need to use the paper process instead

• Different services to transition to Digital by Default as and when they are ready. Each service will only move to Digital by Default once it has met a defined set of readiness criteria, such as ensuring the necessary IT infrastructure is in place. This approach means the transition will be a gradual roll out.

Summary of impacts

Exchequer impact (£ million)

2025 to 2026	2026 to 2027	2027 to 2028	2028 to 2029	2029 to 2030	2030 to 2031
nil	nil	nil	nil	nil	nil

This measure is not expected to have an Exchequer impact.

Macroeconomic impact

This measure is not expected to have any significant macroeconomic impacts.

Impact on individuals, households and families

This measure will impact individuals who have not proactively consented to receive outbound digital correspondence but have interacted with HMRC digitally. They will be required to provide an email address at designated interaction points. If they do not provide valid digital contact details, they will drop out of the digital service and will have to opt into the paper route.

The customer journey for the digitally excluded will remain the same, as they do not engage digitally so will not be required to provide an email address. The paper route will still be available, and one of our design criteria is to make sure the paper service remains on par with any improvements to the digital service.

HMRC will engage with stakeholders to support delivery and ensure consistent application of safeguards across all customer segments.

The measure is not expected to impact on family formation, stability or breakdown.

This measure is expected to impact individuals experience of dealing with HMRC as managing tax affairs digitally will be faster and simpler.

Equalities impacts

Older customers and those with certain disabilities are more likely to be digitally excluded or digitally assisted and may be disproportionately reliant on paper correspondence. Safeguards will be included to ensure these groups can continue accessing paper communications if specifically needed, with a clear and simple opt-out process and ongoing support through non-digital channels. The measure is designed to target customers who are already using HMRC’s digital services. Those individuals are generally more likely to be younger and less likely to have a disability, however this will vary depending on the digital services being used.

Communications and service design will be informed by further equalities analysis and co-designed with users to ensure accessibility and confidence in digital formats. HMRC will continue to assess and monitor impacts throughout implementation, including through stakeholder engagement. An impact assessment will be considered to support delivery and ensure consistent application of safeguards across all customer segments.

Administrative Impact on business including civil society organisations

The measure is expected to have a negligible administrative impact on businesses and civil society organisations, as most digitally capable businesses already interact with HMRC online and will experience minimal disruption. Businesses will be required to provide an email address at designated interaction points. If they do not provide valid digital contact details, they will drop out of the digital service and will have to opt into the paper route. 

One-off costs could include familiarising themselves with the change and upskilling staff. It is not anticipated there will be ongoing costs since this change doesn’t alter their tax obligations.

Paper correspondence will remain available for those businesses unable to engage digitally.

HMRC will engage with stakeholders to support delivery and ensure consistent application of safeguards across all customer segments.

This measure is expected to impact businesses experience of dealing with HMRC as managing their tax affairs on digital platforms will be simpler.

Operational impact (£ million) (HMRC or other)

There are no operational impacts arising from the legislation being introduced at this fiscal event. However, impacting is ongoing, and any future costs identified will be quantified and published at subsequent fiscal events. This legislation is an enabler for HMRC to deliver on the commitment to save £50 million annual savings in print and postage.

Other impacts

No other impacts have been identified.

Monitoring and evaluation

The measure will be monitored and assessed alongside other measures in the government’s package for Tax Administration and monitored through communication with affected taxpayer groups.

Further advice

If you have any questions about this change, contact HMRC Tax Administration Directorate at digitaloutboundcommunications@hmrc.gov.uk.