We are mindful that managing taxes on your own can be complex, complicated and stressful. If you are someone who has made life stressful and worries about missing deadlines and overpaying tax or unsure about the amounts, HMRC (His Majesty’s Revenue & Customs) in the UK gets you covered. They have a Personal Tax Account, which makes your life easy. The best thing about this account is that it helps you view and control your tax information online. This article covers the following outline:
Outline
- HMRC Personal Tax Account
- Online Personal Tax Account (UK)
- What Is a Personal Tax Account?
- How to Create a Personal Tax Account
- Benefits & Things You Can Do
- Common Problems & Tips
- FAQs
1. HMRC Personal Tax Account
HMRC Personal Tax Account refers to the digital service provided by HMRC. It is a one stop solution to all your queries as using this account, you can see all your tax related details in one place. All you need is an internet connection and your computer or mobile phone to access your account anytime anywhere.
An HMRC Personal Tax Account helps you in:
- Checking your estimated income tax
- Submitting or viewing your self-assessment tax returns
- Claiming a tax refund, in case have paid more than needed
- Accessing the status of your state pension and record of national insurance
- Updating or changing your personal details like, address, name, etc.
You can take a personal tax account as your “tax control room” because everything you need can be accessed in one place.
2. Online Personal Tax Account (UK)
TBH, personal tax account and online personal tax account (UK) are the same things. In other words, we simply refer to the same service when we add online. Via HMRC’s website, you can access your personal tax account and:
- If you are connected to internet, you can use it 24/7.
- It ends the need to visit an HMRC office yourself physically.
- It bridges you to real time updates and information.
In short, the online highlights and emphasizes the fact that everything can be accessible via internet
3. What Is a Personal Tax Account?
Actually, a Personal Tax Account (PTA) is your private online account with HMRC. It provides you with the tools to manage your account by collecting all your tax related information.
It is akin to any online banking; however, it is for taxes only. Using this account, as stated earlier, you can:
- Access the details of due taxes and paid taxes
- See the record of National Insurance
- Update personal information anytime, anywhere
- If needed, submit tax returns
- Get refund if you have paid more than the owed tax
All kind of people, for example, employed, self-employed, or pensioners can avail themselves this service, as HMRC introduced this personal tax account, to help people bring ease in their life. From taking control, and reducing mistakes to cutting the time and effort of dealing with taxes by paper or phone, a personal tax account is your one stop solution.
4. How to Create a Personal Tax Account
To sign up a personal tax account, you have to follow the below mentioned steps:
Step 1: Prior to creating your account, make sure you have sorted your documents and following details:
- Your National Insurance number
- Identity Document like passport, driving licence, or recent payslip or P60
- An email address
Step 2: Go to the HMRC Personal Tax Account website
Visit www.gov.uk/personal-tax-account and click “Start now” or “Sign in or set up”
Step 3: Add sign in details
Choose “Create an account” if you don’t have an account with HMRC. Note that, you can use your Government Gateway account details to login as well.
To create your account you need to enter your email, name, and a password. For confirmation of your account, you will need to enter the code you receive via email.
Step 4: Verify your identity
As you know, there has always been a risk to data breach, HMRC asks questions to confirm who you are so to keep you and your things safe. They may ask you questions about your passport, driving licence, or other documents.
Step 5: Link your tax services
After creating and activating your account, you can add or link services, like self-assessment, provided for Personal Tax Account.
5. Benefits & Things You Can Do
Your personal tax account is very beneficial and brings ease in your life. Following are the main benefits of your Personal Tax Account with HMRC:
- You can not only view and track your tax code, but also you can get Income Tax estimate.
- Via this account, you can submit or view self-assessment returns.
- If you have overpaid your tax, you can claim tax refunds.
- If there’s any change in your personal information, you can update it anytime.
- Your marriage allowance and other allowances can be managed
- It provides you the option of tracking your past tax years up to five years
Owing to the digital account, you can save your time and minimise the chances of error.
6. Common Problems & Tips
Even though the digital services provide numerous advantages and are often designed in a way which ensures the comfort of users, yet one may face certain challenges. Following are some of the known issues and tips to handle them, if faced:
- Identity verification fails
To verify your account, you need UK passport or driving licence. However, if you don’t have one, your registration may be harder.
Tip: You can use other documents like P60 or payslip which HMRC also accepts. If you are still having issues, contact HMRC for assistance. - Forgotten password or login
If you have forgotten your password, use the “forgot password” link to reset your password. - Wrong tax code or estimates
Not always, but sometimes HMRC’s calculations might be a little off. On the off chance that you meet a mistake, tell HMRC through your account. - Technical problems / browser issues
Sometimes, because of certain issues with the browser, website might not function well, you can fix this issue by updating your browser.
7. FAQs
Q1: Who can use the Personal Tax Account?
A: Anyone can use it. Mostly it is used by UK residents or those taxpayers who pay taxes or need to interact with HMRC.
Q2: Is there a fee to create it?
A: No. There is no fee to create or use it.
Q3: Do I need to file Self-Assessment if I have a Personal Tax Account?
A: If you are someone with certain incomes like self-employment, rental income, etc., you need to file Self-Assessment.
Q4: What if I don’t have a passport or driving licence?
A: As mentioned above, you can use other identity documents like a recent P60 or payslip. If HMRC still rejects this mode of verification, you can contact them for the support.
Q5: Can I use the Personal Tax Account from abroad?
A: Definitely, all you need is internet access and you can login from anywhere.
Q6: What happens if I lose my login or forget my details?
A: There is an option “Forget Password.” You can use this feature to recover your password. However, you have to prove your identity again to HMRC, if this feature fails.