In today’s digital age, managing taxes in the UK has become more streamlined and user-friendly, thanks to the HM Revenue and Customs (HMRC) online services. For UK taxpayers, understanding how to check and manage their tax accounts with HMRC is crucial. This article, the first part of a comprehensive guide, will focus on setting up and accessing your HMRC personal tax account.
In the United Kingdom, the HM Revenue and Customs (HMRC) is responsible for collecting and managing taxes, and every individual and business is assigned a unique tax account with the HMRC. Checking your tax account regularly can help you stay on top of your tax obligations and ensure that your personal and business information is up-to-date. You need to have a tax account with HMRC before you can check your online tax information.
Your PTA (Personal tax Account) is an online service provided by HM Revenue & Customs (HMRC) that allows you to manage your PTA. Your PTA is a way to record and manage your tax preferences in one secure place. Yes
There are a variety of services and more are being added all the time. With your personal tax account, you can:
• Check your income tax estimate and tax code
• Complete, file and view a personal tax return
• Request a tax refund
• Control and manage your tax credits
• Check your state income
• Keep track of the tax forms you've submitted online
• Consult or update your probate order
• Notify HMRC of a change of address
• Review or update the benefits you receive from work, such as B- Information about the company car and health insurance
If You Do Not Have a Personal Tax Account
You need your government portal user ID and password to set up a personal tax account. If you don't already have a user ID, you can create one the first time you log in.
You'll need your social security number or zip code and 2 of the following:
1. A valid UK passport
2. UK driving license with a photo ID issued by DVLA (or DVA in Northern Ireland)
3. Salary slip for the last 3 months or P60 from your employer for the last tax year
4. Details of tax credit eligibility, if you have it
5. Details of your self-assessment tax return (within the last two years), if you have filed one
6. Information about your credit file, if any (such as loans, credit cards or mortgages)
Here is a step-by-step Guide on How to Check Your Tax Account with the HMRC
Register for an HMRC account: Before you can access your tax account, you need to register for a Government Gateway account. This will give you a user ID and password, which you can use to log into the HMRC website. You can register for a Government Gateway account on the HMRC website.
Log in to your account: Once you have your Government Gateway user ID and password, you can log in to the HMRC website and access your tax account. On the HMRC homepage, click the "Sign in or Register" button and enter your user ID and password.
View your tax information: Once you are logged in, you will see an overview of your tax account, including the amount of tax owed, the amount of tax paid, and the payment schedule for any outstanding tax. You will also be able to view your tax code and check the accuracy of your personal information.
Check your tax bill: To view a detailed breakdown of your tax bill, click on the "Tax bill" section of your tax account. This will show the amount of tax owed, the payment due date, and any penalties for late payment.
View your payment history: To see a record of all the payments you have made towards your tax bill, click on the "Payment History" section of your tax account. This will show the date and amount of each payment, as well as the payment method used.
Update your information: If you need to update your personal information, such as your address, you can do so through your tax account. Simply click on the "Personal details" section and make any necessary changes.
Request a statement: If you need a detailed statement of your tax account, you can request one through the HMRC website or by contacting HMRC directly. To request a statement online, go to the "Downloads and Orders" section of your tax account and select "Order a Statement".
Seek professional advice: If you are unsure about how to check your tax account or have any questions about your tax bill, it is always a good idea to seek professional advice from an accountant or tax professional.
Here is a List of Services you can use with your HMRC online account:
Use your HM Revenue and Customs (HMRC) online account to sign in for:
Alcohol and Tobacco Warehousing
Alcohol Wholesaler Registration Scheme
Annual Tax on Enveloped Dwellings
Automatic Exchange of Information (AEOI)
Business tax account
Charities Online
Construction Industry Scheme (CIS)
Corporation Tax
DIY housebuilder scheme
Duty Deferment Electronic Statements (DDES)
electronic Binding Tariff Information (eBTI)
Employment Intermediaries
Excise Movement and Control System (EMCS)
Fulfilment House Due Diligence Scheme
Gambling Tax Service
Gift Aid
Import Control System (ICS)
Machine Games Duty
Making Tax Digital for Income Tax
Managing Pension Schemes
Money laundering supervision
New Computerised Transit System (NCTS)
New Export Scheme (NES)
Notification of Vehicles Arrivals (NOVA)
PAYE for employers
Pensions Schemes Online
Personal tax account
Plastic Packaging Tax
Rebated Oils Enquiry Service
Self Assessment
Self Assessment for partnerships and trusts
Shared Workspace
Soft Drinks Industry Levy
Stamp Taxes
Tied Oil Enquiry Service
VAT
VAT EU Refunds
VAT Import One Stop Shop (IOSS) Scheme
VAT Mini One Stop Shop (MOSS) Scheme
VAT One Stop Shop (OSS) Scheme
How to Open HMRC Online Account in the UK?
To open an HMRC online account in the UK, you can follow these steps:
Go to the HMRC website at www.gov.uk and click on the "Sign in" button in the top right corner of the page.
Click on the "Create an account" button and follow the on-screen instructions to enter your personal information, including your name, address, and National Insurance number.
Choose a user ID and password for your account, and select a security question and answer.
Once you've entered all your information, click on the "Create account" button.
HMRC will send you an activation code by post within 10 working days. Once you receive the code, go back to the HMRC website and sign in to your account.
Enter the activation code when prompted, and you will then be able to access your HMRC online account.
Once you have access to your HMRC online account, you can use it to manage your tax affairs, including filing your tax returns, paying your taxes, and updating your personal details.
Managing Your Tax Affairs
Reviewing National Insurance Record
Your personal tax account provides a detailed view of your National Insurance record, covering your entire working history. This is essential for ensuring that your contributions are accurate and up-to-date, which impacts your eligibility for a full state pension upon reaching the pension age.
Employment Records and PAYE Codes
You can also review your employment records and PAYE codes through the account. This feature allows you to ensure that your employment details match HMRC’s records and to adjust your PAYE code if necessary, helping manage how much tax you pay throughout the year.
Other Key Benefits
The personal tax account also offers other functionalities, such as:
Checking income tax paid in previous years.
Managing child benefit circumstances.
Applying for tax reliefs, like Marriage Allowance.
Accessing details of your Unique Taxpayer Reference (UTR) number and National Insurance number.
Setting up and using a personal tax account with HMRC is a significant step towards efficient tax management for UK taxpayers. It provides a comprehensive platform to monitor and manage various aspects of your tax affairs, ensuring that you stay updated and compliant with your tax responsibilities.
Can HMRC Track You Abroad?
Yes, HMRC (Her Majesty's Revenue and Customs) can track you abroad if they have reason to believe that you have not paid the correct amount of tax in the UK. HMRC has various powers to obtain information about individuals and businesses, including information from foreign tax authorities and financial institutions.
If HMRC suspects that you have unpaid taxes, they may request information from other countries under double tax treaties or mutual legal assistance agreements. They can also use their own powers to investigate taxpayers who are based abroad or have offshore assets. For example, HMRC can issue a notice requiring a person to provide information about their offshore income or gains, or they can use their powers to investigate offshore tax evasion.
It's worth noting that HMRC generally only pursues cases where the amount of unpaid tax is significant, and they will usually try to resolve any issues through communication and cooperation with the taxpayer before resorting to enforcement action. However, if you have concerns about your tax affairs or are uncertain about your obligations, it's best to seek professional advice from a tax advisor or accountant.
How Do I Contact HMRC From Outside UK?
If you need to contact HMRC (Her Majesty's Revenue and Customs) from outside the UK, you can call their international helpline. The international helpline is available to customers living outside the UK who need help with their UK tax affairs.
To contact the HMRC international helpline, you will need to call the following number:
+44 135 535 9022
The helpline is open from 8am to 8pm UK time, Monday to Friday (excluding bank holidays).
Before you call, make sure you have your National Insurance number or Unique Taxpayer Reference (UTR) number to hand, as well as any relevant documentation or information about your tax affairs. It's also a good idea to be prepared to explain your query clearly and concisely so that the HMRC representative can assist you as efficiently as possible.
If you're not able to call the international helpline, you can also contact HMRC by post. The address to use depends on the nature of your inquiry, so check the HMRC website for the appropriate address to use.
Checking your tax account with the HMRC in the UK is a simple and straightforward process that can help you stay on top of your tax obligations and ensure that your personal and business information is up-to-date. By registering for a Government Gateway account, logging into the HMRC website, and regularly checking your tax account, you can stay informed and in control of your tax affairs.
Utilizing Your HMRC Personal Tax Account
Managing Tax Credits
Accessing Tax Credit Services
Tax credits are a significant component of the UK tax system, providing financial support to individuals with low income or those responsible for children. The personal tax account allows you to manage your tax credits effectively.
Key Functions
Reporting Income Changes: If you're self-employed and have estimated your income when renewing tax credits, you must report the actual income by 31 January.
Notifying Changes in Circumstances: Inform HMRC about any changes, such as marital status or working hours.
Payment Information: Find out the amount and schedule of your tax credit payments.
Renewing Tax Credits: While the service for renewing tax credits for the 2023 to 2024 tax year is no longer available, you can contact HMRC for any related issues.
Understanding Tax Codes
Importance of Tax Codes
Your tax code is essential as it determines how much Income Tax is deducted from your pay or pension. HMRC informs your employer or pension provider about the code to be used.
Finding Your Tax Code
Online: Check your tax code for the current and previous years by signing into your personal tax account.
Other Methods: The HMRC app, payslips, and Tax Code Notice letters from HMRC are alternative ways to find your tax code.
Additional Features of Your Personal Tax Account
Change of Address: Easily update your address details.
Income Tax Check: Review your tax code, personal allowance, and income details for the current and four previous tax years.
State Pension: Get an estimate of your projected state pension and check your National Insurance contributions record.
Child Benefit: Report changes affecting child benefit.
Marriage Allowance: Transfer part of your personal allowance to your spouse or civil partner.
National Insurance Number: View, save, or print your National Insurance number.
Tax Calculations: Check your income tax for the previous year to understand any underpaid/overpaid taxes.
Tax Credits Management: Renew tax credit claims and report changes in circumstances.
Accessing and Using HMRC's Online Services
Registration and Activation
Registration for HMRC online services is a prerequisite for filing Self Assessment tax returns online. Remember to allow sufficient time before the deadline to set up and activate your account.
Retrieving Lost Credentials
If you lose your User ID and/or password, they can be retrieved online, provided you have already enrolled in one of HMRC's online services. If not, you will need to create a new Government Gateway account.
The HMRC personal tax account is an invaluable tool for managing your tax affairs in the UK. From managing tax credits to understanding your tax code, it simplifies and streamlines your interactions with HMRC. In the next part, we will explore further functionalities of the personal tax account, ensuring that you are fully equipped to handle your tax matters with ease and efficiency.
Advanced Features of the HMRC Personal Tax Account
Advanced Functionalities for Efficient Tax Management
1. Comprehensive Tax Management
The HMRC personal tax account offers a wide range of services, enabling individuals to manage various aspects of their tax affairs efficiently. From checking your income tax estimate and tax code to filling in, sending, and viewing a personal tax return, the account provides a centralized platform for all your tax-related needs.
2. Real-Time Information Update
You can access up-to-date information about your PAYE tax code, income from employment for the past five years, and how much Income Tax you paid during this period. The account keeps you informed about any changes to your tax situation as they occur.
3. Benefits and Allowances Management
The platform allows you to manage benefits such as tax credits, check your National Insurance Record for State Pension status, update your Marriage Allowance, and make changes to your personal details like name or address.
Utilizing the Personal Tax Account for Specific Purposes
1. Addressing Tax Code Issues
You can view and modify your PAYE code through the account, ensuring that the correct amount of tax is withheld from your income. This feature is particularly useful if you need to adjust your tax liabilities throughout the year.
2. Managing Child Benefit and Marriage Allowance
The account provides functionalities to manage child benefits, including opting out if necessary, and to make claims or check the progress of existing Marriage Allowance claims.
3. Viewing Employment and Pension Records
Access month-by-month pay and tax figures reported by your employer or pension provider for the current tax year and the past four years. This feature helps in keeping track of your income and taxes paid over time.
4. National Insurance and State Pension
Review your complete National Insurance record and check your State Pension estimate. This is crucial for ensuring you have the necessary credits for a full pension upon reaching the state pension age.
5. Dealing with Under or Overpaid Tax
If you receive a PAYE assessment showing under or overpaid tax, the personal tax account provides an explanation and options to make payments or claim repayments.
Integration with Making Tax Digital (MTD) and Self-Assessment
1. Preparing for MTD
While the implementation of Making Tax Digital (MTD) has been postponed, HMRC is enhancing its digital capabilities in preparation for its launch. The personal tax account is a crucial element in this digital transformation.
2. Self-Assessment Integration
For those within the Self-Assessment system, you can view and print your Self-Assessment tax calculation (SA302) directly from your account. This is particularly useful when applying for mortgages or loans.
The HMRC personal tax account is a dynamic and comprehensive tool, designed to streamline and simplify the management of your tax affairs. Its advanced features offer real-time updates, detailed records, and easy management of various tax-related activities. Whether you're managing tax codes, handling child benefits.
Detailed 2024 Updates on Checking Your Tax Account with HMRC
In 2024, HM Revenue and Customs (HMRC) has made several important updates to how taxpayers can manage and review their tax accounts, significantly enhancing the digital and user accessibility of their services. Below are the specific updates implemented:
Personal Tax Account Enhancements
HMRC's updates to the personal tax account include new functionalities that allow users to directly update their income details from jobs and pensions. This update aims to ensure users pay the correct tax amounts by keeping their income data current. The service now includes a clearer display of tax codes, Personal Allowance, and an estimated tax overview for the current tax year. For more details on these features, visit Check your Income Tax for the current year.
Business Tax Account Improvements
Business tax accounts have seen significant enhancements. New features include the ability to add or remove a tax, duty, or scheme, check secure messages from HMRC, and manage team member access to specific tax duties. These improvements cater to businesses that require flexibility in managing various tax responsibilities and streamline operations for managing multiple tax issues. For a comprehensive list of functionalities and to use the service, go to Sign in to your HMRC business tax account.
Introduction of New Digital Tools
HMRC introduced several new digital tools and calculators in 2024, designed to assist both individuals and businesses with specific tax-related calculations. This includes tools for calculating director’s National Insurance contributions and PAYE tax calculations. These tools are aimed at facilitating self-service for accurate tax and financial management. Explore these tools at HMRC tools and calculators.
Tax System Simplification
A policy paper released in January 2024 outlines HMRC's commitment to simplifying the tax system. The paper details initiatives aimed at reducing complexities within the tax system, enhancing public sector productivity through digital services, and making the tax system fairer and easier to navigate. This is part of HMRC's broader strategy to improve tax administration. The full details can be found in the Simplification update January 2024.
HMRC App Updates
The HMRC app now includes enhanced features that allow users to manage tax credits, renew claims, and check payments, making tax management more accessible on mobile devices. These updates make it easier for users to handle their tax affairs efficiently from anywhere. Learn more about how to use these features by visiting HMRC videos for tax credits.
These updates reflect HMRC's ongoing efforts to enhance the efficiency of tax administration, ensuring that both individuals and businesses can manage their taxes more effectively and with greater ease.
How a Tax Accountant Can Help You Manage Your Tax Account with HMRC
Navigating the complexities of tax management can be daunting for many individuals and businesses in the UK. A tax accountant plays a crucial role in simplifying this process, offering expertise and guidance in managing your tax account with HMRC (Her Majesty's Revenue and Customs). This article explores the various ways a tax accountant can assist you in efficiently handling your tax affairs.
Understanding Tax Regulations and Compliance
Expert Knowledge: Tax accountants are well-versed in the latest tax laws and regulations. They provide accurate advice on tax compliance, ensuring you adhere to all legal requirements.
Staying Updated: Tax laws are subject to frequent changes. A tax accountant stays abreast of these updates, safeguarding you against potential non-compliance issues.
Strategic Tax Planning and Advice
Optimizing Tax Liabilities: Tax accountants offer strategic planning to minimize tax liabilities within legal frameworks. They identify tax reliefs and deductions you’re eligible for, reducing your overall tax burden.
Future Planning: They provide long-term tax planning advice, considering future life events or business expansions, and their impact on your tax obligations.
Assistance with HMRC Personal Tax Account
Account Setup and Management: A tax accountant can help set up and manage your HMRC personal tax account. They ensure that all your details are accurate and up-to-date, reducing the likelihood of errors.
Dealing with Complexities: If you have complex tax affairs, such as multiple income streams, foreign income, or capital gains tax liabilities, a tax accountant can manage these efficiently through your HMRC account.
Handling Tax Returns and Self-Assessment
Preparing and Filing Returns: Tax accountants handle the preparation and filing of tax returns. They ensure that all necessary information is accurately reported, avoiding penalties for late or incorrect filings.
Dealing with HMRC: Tax accountants act as intermediaries between you and HMRC, handling any queries, investigations, or audits. They communicate effectively with HMRC, providing necessary documentation and explanations.
Maximizing Tax Credits and Reliefs
Identifying Eligibility: Tax accountants assess your eligibility for various tax credits and reliefs, such as Marriage Allowance or Working Tax Credit, ensuring you benefit from these provisions.
Claiming Benefits: They assist in claiming these benefits through your HMRC account, ensuring all criteria are met and the process is followed correctly.
Resolving Disputes and Queries
Representation: In case of disputes with HMRC, a tax accountant represents your interests, offering expert advice and negotiation skills.
Clarifying Queries: They address any queries or concerns you might have about your tax situation, providing clarity and peace of mind.
Offering Tailored Services
Personalized Approach: Each individual’s or business's tax situation is unique. Tax accountants provide personalized services tailored to your specific needs and circumstances.
Business-Specific Services: For businesses, they offer additional services like VAT management, payroll taxes, and corporate tax planning.
Engaging a tax accountant to manage your tax account with HMRC provides numerous benefits. From ensuring compliance and optimizing tax liabilities to handling complex tax affairs and representing you in disputes, their expertise is invaluable. Whether you’re an individual or running a business, a tax accountant is a key ally in navigating the intricate world of taxation in the UK.
FAQs
1. Q: Can I authorize an accountant to manage my HMRC tax account on my behalf? A: Yes, you can authorize a professional, like an accountant, to manage your tax affairs through your HMRC account.
2. Q: What should I do if I notice discrepancies in my tax account?
A: Contact HMRC immediately to rectify any discrepancies in your tax account.
3. Q: How do I report changes in my income to HMRC?
A: Update your income details through your personal tax account or contact HMRC directly.
4. Q: Can I access my HMRC tax account from outside the UK?
A: Yes, you can access your HMRC tax account from anywhere, provided you have internet access.
5. Q: How do I deregister for VAT through my HMRC account?
A: You can deregister for VAT using the online services in your HMRC account.
6. Q: What happens if I forget my Government Gateway user ID or password?
A: You can recover your user ID or reset your password through the Government Gateway website.
7. Q: Can I view my previous years' tax returns on my HMRC account?
A: Yes, your HMRC account provides access to your past tax returns and assessments.
8. Q: How do I update my marital status in my HMRC tax account?
A: Log in to your account and update your personal details section with your new marital status.
9. Q: What should I do if I can't pay my tax bill on time?
A: Contact HMRC as soon as possible to discuss possible payment plans or arrangements.
10. Q: How do I claim tax relief for work-related expenses through HMRC?
A: You can claim tax relief on eligible work-related expenses directly through your HMRC account.
11. Q: Can I check the status of a tax refund through my HMRC account?
A: Yes, your account provides information on the status of any tax refunds.
12. Q: How do I update my business address in my HMRC account?
A: Log into your account and update your business details with your new address.
13. Q: What should I do if I start receiving income from abroad?
A: Report your foreign income through your HMRC account to ensure correct tax assessment.
14. Q: How do I register for Self Assessment through my HMRC account?
A: You can register for Self Assessment using the online services provided in your HMRC account.
15. Q: Can I manage my Capital Gains Tax through my HMRC account?
A: Yes, you can report and manage Capital Gains Tax obligations through your account.
16. Q: How do I check my National Insurance contributions on HMRC?
A: Your HMRC account provides a detailed view of your National Insurance record.
17. Q: Can I change my tax code through my HMRC account?
A: While you can view your tax code, changes to it must be done by HMRC based on your updated information.
18. Q: How do I report a change in my business structure to HMRC?
A: Update your business structure details in the relevant section of your HMRC account.
19. Q: Can I use my HMRC account to apply for tax exemptions?
A: Yes, you can apply for certain tax exemptions and reliefs through your HMRC account.
20. Q: How do I submit a query or complaint to HMRC through my account?
A: Use the contact or help section in your HMRC account to submit queries or complaints.