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Introduction
Starting in March 2026, HMRC is making a significant shift in how they communicate with taxpayers. The traditional brown envelope will soon be replaced by digital notifications directing you to check your online tax account. While this sounds modern and efficient, accountants across the UK including our team at YRF Accountants in Bolton have raised serious concerns about the execution.
Here's what Bolton and Manchester businesses need to know about HMRC's new digital communications policy and why it might create more problems than it solves.
What's Changing? HMRC's New Digital Communications Policy
In their recent policy paper "Modernising Digital Outbound Communications," HMRC announced that anyone who engages digitally with them will automatically receive correspondence through their digital tax account rather than by post—unless they actively opt out.
The Key Changes:
? Digital-first approach: Notifications go to your online tax account
? Implementation date: March 2026 (after Finance Bill royal assent)
? Automatic enrolment: Digital users switched unless they opt out
? Opt-out available: Continue receiving paper if preferred
? Cost-saving measure: £50 million annual savings by 2028/29
This forms part of HMRC's broader ambition to achieve 90% digital interactions by 2029/30.
The Critical Flaw: One-Way Communication Only
The major issue accountants have identified is that this policy only covers outbound communications messages from HMRC to taxpayers. Inbound communications from taxpayers to HMRC still require traditional post or phone.
What This Means in Practice:
Example: HMRC sends you a digital notification about a £2,500 tax bill.
- ? You receive an email alert to check your online account
- ? You can view the assessment digitally
- ? To query or dispute it, you must write a letter or call
- ? No secure messaging for back-and-forth communication
- ? No digital document upload for supporting evidence
This creates a frustrating hybrid system where communication flows smoothly in one direction but reverts to outdated methods in the other.
Why Bolton and Manchester Accountants Are Concerned
At YRF Accountants, we've helped hundreds of Bolton and Manchester businesses navigate HMRC communications over the past decade. Based on our experience, we share four major industry concerns:
Concern #1: Ignored Notifications
The reality: Many taxpayers already ignore post from HMRC. Moving to digital won't change this behaviour it'll just shift the problem from letterbox to inbox.
Our clients frequently:
- Have email filters sending government emails to junk
- Forget to check digital tax accounts regularly
- Assume online notifications are spam
- Only respond when penalties escalate
Bolton example: We've seen clients who automatically filter GOV.UK emails to spam, similar to Companies House notifications. Digital format doesn't guarantee engagement.
Concern
#2: Agents Left Behind
HMRC's policy sidelines accountants and tax agents. Currently, both client and agent receive correspondence copies. Under the new system:
- ? Agents won't receive digital notifications sent to clients
- ? Clients must remember to forward messages to accountants
- ? Accountants lose automatic "trigger points" for action
Real impact: In our Bolton practice, we often learn about unpaid tax or penalties through letters we receive as agents. This acts as an early warning system. Under digital-only client communications, we estimate we'll miss 90% of notifications unless clients proactively inform us.
Concern #3: No Secure Two-Way Portal
What accountants have requested for over 20 years is a secure portal for all communications. This would allow:
? Multi-step email chains with HMRC
? Document sharing through secure platforms
? Complete digital audit trail
? Agent access to client communications
? Reduced delays and postal costs
Instead, HMRC has delivered a half-measure that digitizes outbound communication while leaving inbound processes unchanged.
Concern #4: Unanswered Questions
Critical questions remain about system failures, data security, vulnerable taxpayers, and what happens when digital notifications go unread. The policy paper contains "vaguely worded intentions and hopes with no concrete plans" for handling failures.
What Bolton & Manchester Businesses Should Do Now
Despite concerns, this change is coming. Here's how to prepare:
1. Register Your Digital Tax Account
Set up your HMRC online account now. Familiarize yourself with how it works before March 2026.
2. Whitelist HMRC Emails
Add these to your safe sender list:
3. Check Your Account Monthly
Set reminders to log into your digital tax account, even without notification emails.
4. Keep Your Accountant Informed
Forward any HMRC notifications immediately to YRF Accountants or your current accountant. Consider giving formal agent authorization if you haven't already.
5. Maintain Physical Records
Print and file important notifications. You'll need physical copies if responding by post.
6. Consider Opting Out Initially
If concerned about missing critical notifications during transition, opt out temporarily and continue receiving paper correspondence while the system beds in.
How YRF Accountants Can Help
At YRF Accountants, we're actively preparing for HMRC's digital transition to ensure our Bolton and Manchester clients don't fall through the cracks.
Our Digital Transition Support:
? Setup assistance: Help registering and navigating your digital account
? Regular monitoring: Check your account on your behalf
? Agent authorization: Ensure we have proper authority to manage HMRC affairs
? Proactive communication: Contact you about deadlines before HMRC does
? Compliance protection: Flag potential issues before they become penalties
Special offer: Book a free digital readiness consultation before 31 March 2026 to ensure you're fully prepared.
Contact our Bolton office on 01204 938696 or email info@yrfaccountants.com
What HMRC Should Do Next
For this policy to truly succeed, HMRC needs to:
- Implement two-way digital communication with secure messaging
- Create proper agent access to client notifications
- Develop document sharing portal for evidence submission
- Provide trained staff support for complex queries
- Conduct thorough security reviews of digital infrastructure
Until these elements are in place, HMRC's digital transformation remains incomplete—a half-measure that shifts the problem rather than solving it.
Key Takeaways
? Change date: March 2026—paper replaced by digital notifications
? Automatic enrollment: Digital users switched unless they opt out
? One-way only: Outbound digitized, inbound still by post/phone
? Agent concerns: Accountants won't automatically receive client notifications
? Action needed: Register digital account, whitelist emails, inform accountant
Frequently Asked Questions
Will I still be able to receive paper letters? Yes. You can opt out of digital communications and continue receiving paper correspondence.
Will my accountant receive digital notifications? Unfortunately, no. Under current policy, only taxpayers receive notifications. You must forward these to your accountant.
What if I don't have internet access? HMRC states vulnerable taxpayers and those without digital access will be accommodated, though details remain unclear.
Can I respond to HMRC digitally? Not yet. While you'll receive notifications digitally, responses still require traditional methods (post or phone).
What happens if I miss a notification? This is a major concern. HMRC may argue that sending the notification fulfils their obligation, even if unread. Keep account details current and check regularly.
Need help preparing for HMRC's digital transition?
Don't wait until March 2026. Contact YRF Accountants in Bolton today for expert guidance on managing your tax communications effectively in the digital age.
📞 01204 938696 | 📧 info@yrfaccountants.com