The personal tax account is an online tax account for individuals. The personal tax account enables individuals to see all of their tax and National Insurance information in one place.
The personal tax account is a bit like an online bank account. It allows you to check your balances, file returns and pay any tax that you owe. It is also possible to check your National Insurance record and to get an estimate of your state pension (at today’s rates) when you reach retirement age. This is useful as it can indicate whether you are on target for the full single-tier pension or whether it may be advisable to consider making voluntary contributions.
Taxpayers within PAYE can also check their tax code online via the personal account, check their pay to date, and see an estimate of their tax liability for the year. Again, this can be helpful in flagging up problems, such as a mistake in the tax code, which can then be rectified. It is also possible to check the tax paid last year (2016/17) and claim a tax refund if one is due.
If you are employed and have had too much tax deducted from your pay, this can be done online through the personal tax account using the online tool. To use the tool, you will need your P60 and details of taxable benefits and income received. A refund claim can be made via the personal tax account for the previous four tax years. The progress of the claim, once made, can be tracked through your personal tax account. A refund can also be claimed online if you have stopped working or flexibly accessed all or part of your pension. Employees can also claim tax relief for employment expenses through their personal account.
You can also find out about tax credits and child benefit through your personal account and, if eligible, make a claim for the marriage allowance.
It is also possible to update your personal details online.
There is a lot of personal and financial information on your personal account and it is imperative that this information is secure. Consequently, HMRC have tightened access and in addition to providing your user ID and password, it is necessary to enter an access code (normally sent by text) and provide other information (such as passport details) to verify your identity.
If you have not already done so, take a look at your personal account. Managing your tax affairs online is generally a lot quicker than waiting in a queue to speak to someone at HMRC.
Please get in touch with us at Inform if you need further advice on using the personal tax account or for any other tax related matters.
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