HMRC has hired IT company Restore to bolster its digital communications and online services.

The contract, valued at £140 million, will support HMRC's online services so fewer taxpayers have to rely on contacting tax authorities via post and phone.

HMRC has been trying to persuade taxpayers with routine questions to use its online services instead of helplines to free up staff to focus on individuals with complex queries.

The five-year contract is expected to begin this month following a public procurement process, and will see Restore taking responsibility for outbound print and messaging involving SMS and email.

The company will also continue to provide HMRC with inbound mailroom and scanning services.

In a statement, Restore said:

"Through this partnership, Restore will support the transformation of HMRC's operations into a cutting-edge digital solution and at the same time, deliver for HMRC a reduction in paper consumption by the end of the contract term."

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