Personal tax account – what does yours show?

10th February 2020

It is no secret that HMRC believes in a digital future for tax administration. They have invested huge resources into improving their digital services which they hope will maximise revenue whilst improving customer (the affectionate name that HMRC has for taxpayers) experience and minimising costs.

As part of this vision, in November 2014, HMRC announced that every customer in the UK would have their own personalised digital account “so we can help make it simpler, quicker and easier to pay the right tax at the right time”. There was much talk of the “death of the annual tax return” and all tax professionals being able to book holidays in January. Well, this tax professional is still waiting! And, with over 11 million people filing tax returns for the 2018-19 tax year, I don’t think that will change any time soon.

But the personal tax account is here and is available now – over 21.3 million people have set up an account so far.

The registration process is quick and easy – it helps to have some key information to hand, such as your National Insurance number, your self assessment unique taxpayer reference (UTR) and your passport details. A quick Google of “hmrc digital tax account set up” or just follow this link and you will be up and running in no time.

There is all sorts of useful information available to you once you’re set up, although most people start by checking out how much their State Pension is likely to be and when they are going to receive it! It also allows you to view your PAYE tax code, request a tax refund, and check your National Insurance contributions record.

It may be that checking out your tax account will prevent you or your tax adviser needing to call HMRC with basic queries, saving both time and money. Also, over time HMRC will increase the amount of information and functionality available.

So if you haven’t set up yours, what are you waiting for?

Insights

Is it time to charge rent for your property?

30th July 2020

We explain why the changes to the Entrepreneurs' Relief lifetime limit might mean you should rethink your rental strategy.

Read More

Summer Economic Statement

10th July 2020

An overview of the Chancellor's announcements in Summer Economic Statement.

Read More

COVID-19 – CJRS and SEISS update and some key deadlines

3rd June 2020

A look a the latest announcements about the Coronavirus Job Retention Scheme and the Self-Employment Income Support Scheme including some important deadlines to watch out for.

Read More