HMRC Personal Tax Account – simplified
Whether you’ve recently become self-employed or have been a business owner for some time, your tax returns can be overwhelming. But trust us when we say it doesn’t need to be.
To help guide you, we’ve assembled this handy guide with everything you need to know about your tax account.
After reading it, we’re confident you’ll be clear on your tax account, what to do with it, and where to access it.
Unpicking the term ‘Personal Tax Account’
In December 2015, HM Revenue & Customs (HMRC) introduced Personal Tax Accounts to enable individuals to view and supervise their tax affairs quickly and simply online.
It’s intended you will be able to manage everything tax related, from your personal information to submitting your tax return via this online management system. So, in theory, it’s there to simplify your tax affairs and save you from spending hours on the phone or writing letters to HMRC.
Not to be confused with your Business Tax Account
Depending on how long you’ve been a sole trader or operating a company, you’re likely to have previously used the HMRC online system regarding your business tax account to submit your self-assessment tax return or update other business tax information.
Your tax account is similar to this but solely deals with information about you personally, such as Pensions and National Insurance Contributions.
This is often the first hurdle people encounter, as they mistakenly classify them as the same thing, which they aren’t. They’re separate entities and shouldn’t be confused with each other. But with both accounts online, finding all the information you need about your tax position is even simpler.
Put simply; your ‘Personal Tax Account’ is your very own online ‘portal’ in which you can view, amend, and submit information relating to your personal tax/information directly to HMRC.
Say goodbye to filing paperwork or trying to remember facts and figures!
How to set up your tax account – a step by step guide
This is intended as a self-help, step by step guide. However, if you choose to work with our team we will be here to support you in setting up your account and access. Simply get in touch.
- Go to: https://www.gov.uk/personal-tax-account to set up or sign in to your tax account. If you’re signing in for the first time, you’ll need to register using a Government Gateway Account and National Insurance Number. HMRC also requires proof of identity. The most straightforward options are your P60 or passport number with the expiry date.
- Once you have these details, you can quickly sign up. One thing to note is that when you log in to your account as a self-employed person, it’ll likely redirect you to your Business Tax Account portal first. Remember, this is separate from your tax account, so if this happens, you just need to click the link at the bottom of the page to access your Personal Tax Account.
Additional security for you
HMRC has now introduced a 2-Step Verification system that helps keep you and your sensitive information safe and secure. So, in addition to your username and password, you will be sent a code each time you log in. This will usually be sent to your mobile phone, but you can choose how you wish to receive it.
If you choose a text message, you will be asked for a mobile phone number. Alternatively, you can have the code sent by voice call or through the HMRC app for Smartphones or Tablets.
Once you’ve received and entered your code, you’ll need to complete some security questions, which will be verified by HMRC (this is only on the first sign-in, again, for extra security).
These questions will be:
• Your name
• National Insurance Number
• Date of birth
• Passport number & expiry date
• Details from your most recent payslip or similar information from your P60
You’ll be provided access to your account upon answering the questions correctly.
What can you do once you’re in your Personal Tax Account?
So now that you’re set up, signed in, and accessing your tax account, you can look at the following:
• Check your Income Tax Estimate and Tax Code
• View a previous Tax Return
• Claim tax refunds
• Manage and view your Tax Credits
• View the status of your State Pension
• Track any tax forms that you’ve submitted online
• Check and manage your Marriage Allowance
• Inform HMRC about a change of address
For more information: HMRC has created a detailed guide.
Frequently asked questions
What are the benefits of a personal tax account?
The main benefit is being able to quickly access and update your tax information in a single online location. You can use your tax account to:
• Check your tax code
• View your PAYE coding notices
• Pay your Self-Assessment bill
• Claim a refund
Being aware of scams
Various fraud emails and texts are circulating that claim to be from HMRC. Never give out personal information, reply to text messages, download attachments, or click on any links in emails if you’re not sure they’re 100% genuine.
HMRC will never include any attachments in their text or email messages. They will never ask you for personal information, financial information, or login details. If you receive a message like this, it’s a scam. Forward the message to HMRC’s phishing team at email@example.com and then delete it.
If you’re ever unsure about whether a message is from HMRC or not, you can check their website for more information on how to spot phishing scams.
Whatever you need, get in touch with any queries you have or talk through how we can help. We’re down-to-earth, approachable, and professional.
Email us at firstname.lastname@example.org or call 01772 204102