Modernising Revenue Scotland's tax administration framework – communications from Revenue Scotland to taxpayers: Consultation

Revenue Scotland’s Current Communications Framework

Overview

This section of the consultation sets out commentary on Revenue Scotland’s current communications framework with taxpayers and provides the background context for proposals for change.

The taxes that Revenue Scotland collects and manages, or will do in future, are self-assessed taxes, meaning that taxpayers, or agents on their behalf, calculate the tax due and submit returns to Revenue Scotland. In this context, effective communications by and to Revenue Scotland are essential for both the tax authority and taxpayers.

Communications from taxpayers to Revenue Scotland

The RSTPA provides that where a taxpayer communicates with Revenue Scotland, any notice, application or anything else that a person is required or permitted to give to the tax authority must comply with certain requirements. In particular, the legislation provides that communications must be given in the manner specified by Revenue Scotland.^[9]

Revenue Scotland provides guidance on how it can be contacted at Contact Us | Revenue Scotland.

The manner of communication depends on the nature of the enquiry but can include electronic communications either via email or through the Scottish Electronic Tax System (SETS), which is Revenue Scotland’s IT system for tax returns and administration. The most frequent reason that taxpayers contact Revenue Scotland is in relation to the submission of their tax return.

Where a taxpayer needs enhanced support, which includes where a person is unable to use technology, then Revenue Scotland’s enhanced support policy provides alternative means of communication, including phone and postal communications.

In addition, Revenue Scotland currently uses “ReciteMe” software as part of its website to help taxpayers overcome barriers to obtaining relevant information. These barriers may include disabilities, learning difficulties, visual impairments, or where people’s first language is not English.^[10]

The available data indicates that a high level of taxpayer and agent communication to Revenue Scotland is undertaken via digital means. In 2024-25, for example, Revenue Scotland received 9,486 items of electronic communications (47% from taxpayers directly and 53% from agents), compared to only 135 items of physical mail (1.4% of total inbound mail). In addition, only 11 of the 123,900 tax returns that Revenue Scotland received that year were actual physical paper returns.

Communications from Revenue Scotland to taxpayers

Revenue Scotland regularly contacts taxpayers on a range of matters including:

• reminding taxpayers of deadlines;
• requesting further information;
• providing updates in response to a taxpayer request;
• issuing a formal notice; and
• requesting payment or to address outstanding balances.

Although the RSTPA requires Revenue Scotland to “serve” or “notify” taxpayers, it does not expressly define the method of communication that should be used when doing so.

Without an express definition, section 26 of the Interpretation and Legislative Reform (Scotland) Act 2010 (ILRA) applies. This allows documents to be served by personal delivery, by post (registered or recorded); and, if agreed in writing in advance with the recipient, by being transmitted to an electronic address and in an electronic form specified by the recipient for that purpose (e.g. email).

ILRA provides that where a document is served either by registered or recorded post on an address within the United Kingdom or by means of electronic communications, it is taken to have been received 48 hours after it is sent, unless the contrary is shown. This is known as the “rebuttable presumption of receipt.”

However, ILRA does not provide any presumption of receipt for service by ordinary post. Additionally, the current legislation does not clearly cover the use of electronic service via portals, such as SETS.

Within this legislative framework, Revenue Scotland’s current approach seeks to balance efficiencies, costs, impacts on the environment and taxpayer convenience.

In summary:

• Email is generally only used to communicate with taxpayers when prior consent has been received. In certain circumstances Revenue Scotland issues automated email notifications to taxpayers containing generic information or a secure link. A taxpayer’s prior written consent is always required before protected taxpayer information is sent or documents are served by email.
• Revenue Scotland communicates with certain high-volume taxpayers, via the Secure Messaging Service through the SETS portal.
• Revenue Scotland issues certain high-volume correspondence like reminders and penalties by post. This is due to the current administrative constraints. This correspondence is generally sent by ordinary second-class post as this is a more cost effective and convenient alternative to recorded delivery/signed for post. On average, Revenue Scotland sends more than 2,200 letters by post each month and anticipates that this will increase in future if current arrangements continue.
• Revenue Scotland also use recorded delivery/signed for post to issue some, but not all, formal notices to taxpayers. This includes where court rules require that form of delivery or for certain high value cases.

Revenue Scotland’s current operational practice is further summarised below.

Email: low volume ad hoc correspondence & generic emails

• Taxpayers are asked whether they consent to correspondence being issued by email.
• If consent given, correspondence is emailed. If no consent given correspondence is posted.
• Generic emails that contain no taxpayer information are sent to inform taxpayers of key information.

SETS: Secure Message

• Used to communicate with a small number of high volume taxpayers who have full access to the SETS system.
• The taxpayer can view, download &/or onward share a copy of their correspondence.

Post: high volume correspondence

• Most correspondence including high volume formal notices are generally sent by ordinary post.
• Ordinary post is a more cost effective and convenient alternative to recorded delivery/signed for.

Challenges and Issues with current arrangements

Revenue Scotland has highlighted concerns that the arrangements discussed above are resource intensive, costly and create uncertainty as to whether the correspondence can be said to have been received. More specifically:

• Revenue Scotland can only serve documents by electronic communications where there is prior written consent of the taxpayer. There is uncertainty around how such consent (in relation for instance to its form, duration and withdrawal) can be evidenced. Revenue Scotland’s current practice is to ask taxpayers to complete a written disclaimer confirming consent to use of electronic communications.^[11] The requirement to have consent to electronic communications also causes delay and often results in additional, resource intensive, postal communications between Revenue Scotland and taxpayers before the email disclaimer is in place.
• Even where there is consent, the legislation does not provide certainty around whether the use of electronic communications is restricted to email communications or would also encompass the use of an online portal such as SETS.
• Where service is by recorded delivery/signed for post, there is a cost impact on Revenue Scotland and risks both that taxpayers may either refuse to accept the correspondence or may not be home to allow for it to be delivered.
• In the case of delivery by ordinary post, legislative gaps create uncertainty around whether a taxpayer can be said to have received the correspondence and around the time of receipt.
• Delivery by post is also slower relative to the use of electronic means, and taxpayers will need to retain their physical letter or notice to refer to the information when needed.

On the issue of cost, for example, if Revenue Scotland were to seek to resolve the uncertainties around consent to electronic communications and receipt of ordinary post by serving all formal notices by recorded delivery/Signed For post, the anticipated total postal budget required for the current financial year would be expected to increase by over 330%.

Questions

1. Do you agree that there are challenges with Revenue Scotland’s current communications practice, as described above? Please provide commentary to explain the basis of your answer.