The Ultimate Guide to Personal Tax Account in the UK
Tax is something almost all of us have to face at some point or another during our lives but very few are ever actively involved in managing tax. It doesn't matter what quantity of taxes you are required to cover on wages, tax credits, or even the state pension you receive, every person would benefit from knowing more about the tax implications of their individual. That's why HMRC has launched this particular initiative: The personal tax account. In line with their overall effort in order to "make the tax system digital" personal tax accounts have been made accessible to all for free.
HMRC launched the Personal Tax Account system in 2015. But have you ever used it? The process of registering for a personal account by contacting government officials of the UK is free and can be completed in only 10 minutes. In this article we'll discuss:
1. What is a Personal Tax Account?
2. Can anyone get a personal tax account?
3. Why Should I Register for a Personal Tax Account?
4. What can I do with my Personal Tax Account?
5. What is the Benefit of Signing Up?
6. How do I set up my Personal Tax Account?
7. What's the Government Gateway?
8. What happens If I already have a Government Gateway User ID with a Password?
9. Do I Need a Personal Tax Account and a Self-Assessment Account?
10. Is a Personal Tax Account Compulsory?
11. How do I claim a refund for the current tax year, in-year?
12. Your Security and Safety are Assured through Your Personal Tax Account
13. Where can I access the digital services of HMRC?
14. What do I need to do before I can access HMRC's digital services?
15. What is Assisted Digital?
16. Sharing Information with your Accountant
17. How Much Does a Personal Tax Accountant Cost?
What is a Personal Tax Account?
Personal tax accounts were developed by HMRC to assist individuals in managing their taxes more efficiently and also to provide transparency in data. Introduced in 2015, the tax account for personal use is available to all and serves as a central point for all HMRC-related information.
It has been historically difficult to track your tax obligations due to the information being scattered. A personal tax account is designed to solve this problem by connecting the different tax areas in a single location that can be easily accessed online.
Of course, this type of data is extremely sensitive, therefore authorities have taken measures to ensure it's extremely safe. You'll need the Government Gateway ID to log into the system, and it will require two-step authentication. This is crucial to secure your personal information and keep your information as safe as possible. If you already have an account with HMRC services for tax credits or self-employment, you may be familiar with the security measures that are implemented.
Accessing every financial record can allow you greater knowledge and control. The information contained in your personal tax account is relevant to you and, therefore, you don't have to browse through other pages to find out the information you should be aware of.
Can Anyone Get a Personal Tax Account?
Yes, anyone can get a personal tax account. HMRC introduced the Personal Tax Account system in the year 2015. More than a 3.5million customers are in the process of signing up and are using this system. HMRC encourages all to set up a personal tax account. This article provides the fundamentals of personal tax accounts and how you can use them, and the advantages of joining.
Why Should I Register for a Personal Tax Account?
Personal tax account is a free service that was established by the UK government. It is backed by high-security security systems. The most significant benefit of having your personal tax account in operation is that you can access your tax data all in one place. The concept is that having the entire data easily accessible from one place can give you greater financial control overall. Your account is tailor-made to you. This means you aren't required to search through a sea of useless stuff in order to locate the rules that are applicable to you. One of the benefits of this new system is the speed at which information is processed. It could reduce the waiting period between applying for tax rebate and receiving your refund.
What Can I Do With My Personal Tax Account?
The system is evolving constantly and you are already able to access many elements of improving your finances like:
● Simply notify HMRC that you've moved home.
● Be sure you have the correct tax code. Most people overlook the importance of this.
● Find your National Insurance number.
● Create and track the progress of a self-assessment tax return online.
● Examine your income tax estimates to help you budget better.
● Reviewing the status of your State Pension track.
● Keep an eye on tax-related forms you have submitted to the HMRC online.
● Create tax credits.
● Check and update Your Wedding Allowance.
● Find a lost UTR number
● Review benefits at work, such as medical insurance, or company car.
● Examine your P800 tax form
Keep in mind that this is only the beginning list of the Personal Tax Account. HMRC are adding new components constantly as they strive towards their goal of having a fully digitized platform.
What is the Benefit of Signing Up?
This new system makes it easier to modify the information HMRC has regarding you. Families who want to make a new claim for Benefits for Children online can make use of their personal tax account. They don't have to submit the birth certificate of their child to HMRC since they can immediately verify the information with the appropriate Birth Registration Offices. For parents who claim Tax Credits, the updated system will make it simpler to keep track of the amount you are entitled to and you can renew it online.
It is known that the HMRC assistance line is often difficult to connect to, so this new system could help save you time and help you deal with HMRC more efficiently and less stressful. For more information, please don't hesitate to call us at 07985689912.
How Do I Set Up My Personal Tax Account?
Let’s be honest here, there are no actual ten-minute jobs. In fact, HMRC claims that it will be 5-10 minutes to get it set up. To begin, you have to sign in to your gateway for government accounts.
The online form is simple to use since it only involves the setting up of security protocols and filling in your details. But how long it takes you to find the details you need is entirely dependent on how organized your paperwork is to start with. Things you must be aware of when applying for a personal tax account are:
● The National Insurance Number (this is located on your pay slip)
● Recent payslip
● The most recent P60 or UK passport (must be up-to-date)
● Your landline or mobile number as part of the two-step security
● Select the email address you would like to add to the account.
Now that you've got everything in place, navigate to Government Gateway and select either the individual, group (if you represent a business), or agent (if you represent others' financial affairs with Government) column to begin your registration.
Accessing the Government Gateway
A charity called Tax Help for Older People has created a helpful guide to set up your personal Tax Account that includes an example that shows the types of screens you will encounter throughout the process, as well as easy step-by-step directions.
In the event that you already have an existing Government Gateway account, you will need to utilize the user ID and password you received when you created the Government Gateway account. As part of the HMRC 2-Step verification process, you will also have to answer some additional questions based on information HMRC are aware of about you including details from your most recent P60 or your passport data. Before you get access to your personal tax account, you will also need to enter an access code which HMRC will forward to your mobile (or tablet). HMRC will give you an access code every time you log in.
If you don't have yet a Government Gateway account, you could sign up for one as part of registering for your personal tax account (the identical procedure described in the next paragraph). Be aware that as part of the procedure, you are asked for an email address, a mobile number, and other personal information such as name, and birth date along with your National Insurance Number. If you don't know your national insurance number, then when you arrive on the page asking for your personal information, you should simply click on the link which says "I don't know the National Instance number. In the alternative, you will be asked to provide your postal code.
You then proceed to be asked additional questions that will assist HMRC to determine and identify you. you will be given the choice to answer questions regarding your payslips, passport, or P60. If you choose 'payslips' as an instance, you are asked 'How much National Insurance is shown in the section 'Deductions' on one of your most recent payslips? What is the amount of National Insurance shown on your payslip?'. You must answer two of these questions and, if you successfully answer them, you will proceed to the main page of your Personal Tax Account.
This can be done in four steps:
1) Enter your name as well as your email address, and then enter an individual password. The program generates the Government Gateway User ID.
2) For logging as the first time you are required to have this username, password, and a unique 6-digit code. In this step, you have to specify the phone number. This could be a landline or mobile. The majority of people believe that sending a text to a mobile phone is the easiest, but it's completely up to you. Once you get the number, you input it into the correct field to verify your identity.
3) Answer security questions using the details you need from your passport, P60, and payslips.
4) Your identity of you will be confirmed through your answers. Then you are able to access all the information in your personal tax account.
It's over, the next time you will require your username and password to login to your account. If you encounter any issues regarding the process you may get in touch with HMRC to get some assistance.
What is the Government Gateway?
The Government Gateway is a central location in which you can sign-up to access online services offered by the UK government. To sign up for an account on the Government Gateway account you have to confirm your identity. You can make use of the username and password you get during the sign-up process. This will allow you to access many services which include many of the digital services offered by HMRC. You can sign up for the HMRC online service or your Personal Tax Account (and that means each of the services that are hosted within it) through the Government Gateway.
What Happens If I Already Have a Government Gateway User ID with a Password?
If you already have a Government Gateway User ID and password, this indicates that you already have a Government Gateway account. You can then simply add the online services (personal tax account) you want to use to your account. Before you are able to access them, you will receive a code delivered to your mobile or tablet in the 2-Step verification process described above.
In the event that you have changed the number of your phone from when you last logged into Your Government Gateway account, you must contact HMRC's Helpdesk which will deactivate your old number, so that a new number is able to be connected to your login information. Note that you require a different Government Gateway user ID and password in case you wish to gain access to services such like:
● an individual (for example so that you can file a personal tax return)
● an organization (for example to register for PAYE for Employers).
Do I Need a Personal Tax Account and a Self-Assessment Account?
If you already have enrolled for self-assessment you are familiar with the online tools available. But, a tax personal account is distinct from a self-assessment account. It is advantageous to keep both. You won't be able to file your self-assessment tax return through your personal tax account at home, however, you can submit it using the self-assessment feature once it is activated through the Gateway account. In the meantime, you can use it to manage your self-assessment accounts throughout the year.
A few of the roles you could perform can include:
● Find your Unique Tax Reference (UTR)
● Review your self-assessment messages
● Print or view the tax calculation you have made from your self-assessment
● Notify HMRC regarding the possibility of increasing or decreasing profits in order to modify payments on the account for self-assessment
Is a Personal Tax Account Compulsory?
No, it is not compulsory but, HMRC is encouraging everyone to set up a personal tax account based on the data accessible. By having a better understanding of your financial information, you will be able to make more informed decisions. There are more services that could become available in the coming years, and the capabilities will grow. There is no need to set up a tax account login in the event that you would rather not. You are able to contact HMRC by phone or by using paper-based methods.
Yet, HMRC is notoriously difficult to reach via phone and it will only get more difficult as more services become online. Paper-based administration can be lengthy and requires more tests or documents. This is because it's feasible to perform automated checks online using the information you can provide right directly on the spot. This eliminates the requirement for traditional documents that could be time-consuming to print and distribute. This is why it is strongly recommended to establish a personal tax account.
How Do I Claim A Refund For The Current Tax Year, In-Year?
If you think that you are overpaying taxes through PAYE for the tax period (2022/23), then there's an issue with your tax codes. If you are still employed or receiving pension benefits, you should tell HMRC the reason you believe you are overpaying tax prior to the close of the tax year. It is possible to do this on the internet by using your personal tax account. If you prefer to telephone HMRC, the helpline for individuals and employees can be found on GOV.UK. Before you make a call to HMRC, you will need to collect:
● Your personal information, like your full name, address, date of birth, and National Insurance number
● The details of all your pension providers or employers including their PAYE scheme reference number.
Your Security and Safety Are Assured through Your Personal Tax Account
You are the sole person that can access your personal tax Account with your personal username and password. This service is only accessible to those who are following the exact registration process as you. HMRC is very concerned about security and utilizes firewall security as a standard feature on all its systems. This ensures the highest security for your data since it blocks any attempts at the entry that aren't authorized. All information you give to HMRC online is secured and only your account will be viewed by you. It is important to remain aware of your own online security. Don't divulge your password or user ID and If you must write the information down, do so in a secure spot.
A security measure inside this system will display the date and the time you have logged in to your personal tax account. You must verify this, and if things don't appear right, then you must make contact with HMRC immediately on their website. Another security feature already included is the automatic log-out feature in the event that your account isn't active for more than 15 minutes. HMRC will not ask for your financial or personal details via phone or text message, including reference to your personal tax account. We all need to look for fraudsters and report anything that appears suspicious even in the event that we haven't made any losses.
Where Can I Access The Digital Services of HMRC?
All digital services offered by HMRC are accessible through GOV.UK. HMRC web-based service is an important hub or central point which is where you can gain access to a wide range of services like Your personal tax account, self-assessment online VAT, corporation tax, and PAYE for employers. You can access a comprehensive list of the services with the help of HMRC's official website on the internet. One of the primary online services that are relevant to people includes of them - the personal tax account that permits you the ability to control your finances through HMRC online. It's similar to an online bank account however, it is for tax purposes.
There are stand-alone digital services that aren't part of the HMRC's online services hub, as well as Personal Tax Accounts. Personal Tax Account, and that you are able to access directly through GOV.UK. Since GOV.UK provides wealth in terms of services and information, it's difficult to locate the information you want to find. If you are looking to learn what HMRC services are online A good place to start could be to browse GOV.UK's HMRC service and information section on GOV.UK. If you find the information you want is not available, GOV.UK has a search tool that could assist.
HMRC also has an interactive mobile application that you can download to an Apple or Android tablet or smartphone. At the moment, you can use the application to review and manage tax credits, review your income tax bill for the current year, and keep track of taxes on tax documents you have filed online. You'll need an existing Government Gateway account to log into the app for the first time. It is possible to create one via the application in case you don't have one.
What Do I Need To Do Before I Can Access HMRC’s digital services?
Before you have the ability to access all of HMRC's online services, HMRC needs to check that you are who you say you are. In order to do this, you will have to confirm your identity through a "secure entry portal'' which is Government Gateway.
What is Assisted Digital?
Assisted Digital is the term HMRC uses to describe the extra assistance that people might require in dealing with tax credits or tax refunds online, perhaps due to the fact that they suffer from a disability or don't have internet access. It is also designed to assist those who have access to the internet but struggle to use it due to a lack of confidence, lack of skills, or the fact that they might be facing IT technical issues. If you believe you require HMRC's assisted Digital assistance, you can ask for assistance at the HMRC support line. The assistance you will receive can include:
● Assistance to access an internet connection and a computer. HMRC might suggest you to an organization or charity that could assist you to access the internet.
● Inputting information on your behalf, or helping you to do this yourself.
● Scheduling a face-to-face meeting If you require one.
You can also contact those who can provide help on the phone or via webchat with:
● Difficulties logging in or signing up issues (there is also a 'Get help on this page option at the bottom of relevant pages)
● Error messages you receive when using the majority of HMRC systems.
● Using HMRC free software and tools
● Difficulties in sending forms online
HMRC also offers the Trusted Helper option which permits you to request a trusted family member or friend to assist you to make use of the Personal Tax Account. This service can only be used to help you with your personal tax account. The service cannot be used to assist you in completing your Self Assessment tax return.
In the event that you determine that you wish to alter or eliminate your trusted helper, you can do this by blocking the person you can do by using the 'Help friends or family members' section in your Personal Tax Account. If you have blocked someone, it is vital to know that you are unable to make them available for assistance with your personal tax account. If you are using the Trusted helper service It is crucial to be aware that you remain legally accountable for your own taxes and any errors committed by the Trusted helper will be deemed to be yours.
Sharing Information with your Accountant
Your personal tax account is an excellent way to keep track of all the tax information you have. It is useful to provide your tax professional with details to complete an income tax return or file an application for a tax rebate. Instead of writing out all the details, you could just take a screenshot of the tax information on the Personal Tax Account page and include it in your email. You will always require the tax year as well as the name of your employer.
Alternatively, you can go completely old-fashioned and print the appropriate document from your personal tax account. Then forward it to your tax accountant. Whatever way you give your information away Your Personal Tax Account can be an effective tool for assembling everything related to your tax status.
How Much Does a Personal Tax Accountant Cost?
It's not as easy as simply providing a single figure or even a set of expenses to determine the cost of a personal tax accountant. The reason for this is that the experience that the accountant has, as well as the nature of service you receive and the amount of personal information you have can all influence the price. For instance, if you want an accountant to prepare your tax return but without offering any guidance or a thorough analysis regarding your personal taxes the cost will be considerably less. However, If you are a business that needs assistance with technical issues as well as compliance with numerous filing requirements It is likely that the price will be higher. The cost can vary from £150 to £500.
With the accessibility of your web-based HMRC personal tax account, you may not require assistance from an accountant. When you sign up for an account for your personal tax and sign up for any applicable tax-related services you have complete access and you will be in a position to keep track of and submit any necessary information. It is important to mention that using a tax professional on your own can reduce costs and also ensure that everything is in order. It could be worth spending only a few pounds to avoid penalties or find efficiencies that are available. Tax law can be complicated and there can be financial penalties for mistakes, which is why hiring a competent personal tax accountant could prove beneficial economically.
If you decide to employ a personal tax accountant you must be fully transparent about the price. It is best to discuss this with them right from the beginning to make sure you know what services you will receive as well as their expertise and cost. Please get in contact with us for any questions you have or concerns regarding this article.