The move towards a paperless system for Self Assessment taxpayers has moved a step closer with the introduction of a new digital service that enables taxpayers to dispense with paper statements. The new digital service lets Self Assessment taxpayers opt in to receive email alerts and view messages through a secure, personalised login. The system is currently in test mode.

Whilst some 80% of Self Assessment returns are submitted online the process remains driven by printed letters and reminders (over 44 million letters were sent last year). The launch of digital Self Assessment will reduce the need to send letters and taxpayers will receive online notifications.

This year, HMRC hopes to encourage 1.3m taxpayers to opt in to use the service. This would avoid 2.5 million letters being sent and 63,000 phone calls being made. HMRC received over 10 million Self Assessment returns for the 2012/13 tax year.