The Personal Tax Account has changed the way taxpayers handle their tax affairs. Since its launch in December 2015, millions of people have used this online service to manage their taxes.
What is a Personal Tax Account?
Before the introduction of digital tax services, taxpayers had to complete paper forms and post them to HMRC. This process often caused delays and required a lot of time. The Personal Tax Account has replaced this system with a faster, paperless alternative. You can now access most of your tax information instantly and securely through an online portal.
The Personal Tax Account acts as a one-stop hub where you can:
- Check your tax code and Income Tax estimate
- Manage your National Insurance contributions
- View your State Pension forecast
- File or manage Self Assessment tax returns
- Claim tax refunds or apply for tax relief
- Update personal information such as your address and, in some cases, bank details
- Track tax credits or Child Benefit
This system is simple and secure, while being available 24 hours a day.
Features of a Personal Tax Account
Once you log in, you will find several features that making managing your taxes easier and more transparent.
1. Check Your Tax Code
Your tax code determines how much Income Tax you pay. With your Personal Tax Account, you can view and verify it at any time, ensuring it is correct.
2. Update Your Personal Details
If you move house or change bank accounts, you can update your details instantly. This keeps your records accurate and prevents issues later.
3. Manage PAYE and Self Assessment
Whether you are employed or self-employed, your Personal Tax Account helps you manage your PAYE details or Self Assessment submissions. You can review previous returns, make payments and stay on top of deadlines with ease.
4. View National Insurance Contributions
Your Personal Tax Account allows you to check how many qualifying years you have toward your State Pension. You can also make voluntary contributions if there are any gaps.
5. Check Your Pension Forecast
If you are planning for retirement, you can view your pension forecast based on your current National Insurance record.
6. Track Refunds and Benefits
You can track the progress of tax refunds, manage Child Benefit, update Marriage Allowance and review employer-provided benefits, all from one account.
How to Set Up Your Personal Tax Account
Setting up your account is quick and straightforward. Before you begin, make sure you have:
- Your National Insurance number
- A UK passport, driving licence or recent payslip
- Your P60 or other proof of income
Then, follow these steps to create your account:
1. Go to the HMRC Website
Visit www.gov.uk/personal-tax-account and click Start Now
2. Verify Your Identity
Answer a few security questions about your financial history or provide identity documents such as your passport. You may alternatively use the new GOV.UK One Login service instead of a Government Gateway ID.
3. Create a Government Gateway ID
You will need to a Government Gateway user ID and password or GOV.UK One Login account. Keep them secure as you will need them each time you log in.
4. Enable Two-Factor Authentication
HMRC uses two-factor authentication for added security. You will receive a six-digit code on your phone or through an authentication app every time you log in.
How Having an Account Helps You
Your Personal Tax Account provides complete visibility of your tax information. Everything you need is in one place, helping you stay organised and reducing the risk of mistakes. You can see real-time updates and HMRC continually adds new tools and services, such as digital tax statements and online payments.
The account is always accessible and you can log in anytime to review your information and ensure everything is accurate. You will also receive alerts about any refunds, deadlines and changes.
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This article is for general informational purposes only and does not constitute legal or financial advice. While we aim to keep our content up to date and accurate, UK tax laws and regulations are subject to change. Please speak to an accountant or tax professional for advice tailored to your individual circumstances. Pi Accountancy accepts no responsibility for any issues arising from reliance on the information provided.