HMRC stops posting letters for CT reminders and receipts

Sara White, Editor, Business & Accountancy Daily

HMRC is to start a trial to determine whether to stop sending businesses corporation tax reminder letters where the information can be easily accessed through online accounts.

From June 2025, HMRC will start a trial to see how companies respond if they are not sent reminder letters by HMRC about corporation tax reminders, instalment payment reminders and interest statements, known as CT208 letters.

This follows the decision to stop sending out four corporation tax letters by HMRC, definitely starting in June, including the CT205/A return reminder, CT608 instalment payment reminder, CT207 interest statement and CT209 payment receipt. It will also stop sending accountants and tax agents the CT603A list of issued notices to deliver company tax returns in the post.

On the reminder trial, HMRC told Business & Accountancy Daily: ‘We will also trial no longer sending corporation tax reminder letters (CT208) before we stop sending them permanently.

‘The trial will initially stop sending reminders to a small population of customers with agents and, if successful, we will increase this and eventually include the CT208 reminders to customers.

‘We will monitor the effect and stop the trial if we see a negative impact on our customers or process.’

If businesses respond favourably, the HMRC plan would be to expand the termination of specific letters in the future, although it has not confirmed a timeframe for this. If the letters stop, corporation tax payers, and their accountants and agents, will have to go online on the HMRC website to view the information in their HMRC online accounts and where relevant, agent online service.

This is part of a wider move by HMRC to reduce costs and push taxpayers to online first as a model, rather than its old, preferred method of brown envelopes in the post.

There will be no change to the corporation tax process itself, although it is worth noting that the free online accounts and company tax return service will be closed next March, meaning small businesses will have to use commercial software from that point.

When HMRC stops sending letters from June, businesses will have to view their liabilities and payments in their HMRC online account and likewise agents will have to use the Corporation Tax for Agents online service.

These are only the latest paper communications from HMRC to be cancelled as part of a cost cutting and modernisation programme, with digitisation the big priority.