How To Set Up A Personal Tax Account

Tax is going digital. From Making Tax Digital for businesses to renewing tax credits online, you can’t escape it. But have you set up a personal tax account online?

Online personal tax accounts are the first step in HMRC’s plan to provide self-service for individual tax changes and enquiries.

This will mean that people will no longer need to contact HMRC by post or telephone.

Although it isn’t a comprehensive service as yet, you can currently access the following through your PTA.

  • Access your PAYE code and tax estimate
  • Claim a tax refund
  • Viewing state pension forecasts
  • Find and access NIC number and records
  • Marriage allowance transfers
  • Changing personal details

How To Set Up A Personal Tax Account

Visit https://www.gov.uk/personal-tax-account and click start now.

If you already have a Government Gateway ID you can sign in using this. You may also have verified your identity with Barclays, the Post Office or another method. If you have you can sign in using this option. New to the service altogether?

You can create an account at this point.

Once you are logged in you will see this screen.

how to set up a personal tax account

You Can Now Access All Of Your Information Online

PAYE

Any taxpayer can set up a personal tax account, however, the service is most valuable to employees. At a click, they can check that HMRC holds the correct details about their employment. It also allows them to check their PAYE codes are correct and request changes.

Accessing your details is really useful as automated tax reporting is susceptible to errors. Checking whether HMRC holds the correct details of your employment is crucial in ensuring you are paying the correct amount of tax. If you do notice an error, it is quick and easy to resolve online.

Employee’s having access to their own employment and PAYE code details should also reduce queries to their payroll department.

State Pensions And National Insurance Contributions

By creating a personal tax account you will be able to check your state pension entitlement. You can also see your full history of national insurance contributions at the click of a mouse.  This means you can quickly check if there are any contributions missing, or the amounts don’t add up.

Most people have never checked their NIC’s despite working for years. This new system allows you to keep up to date amending errors at the time instead of years down the line.

Changes To Address And Other Admin

Users of a PTA can keep up with basic administration, such as informing HMRC of a change of address or employer.

You can also use the service to print off proof of your National Insurance number.

Self-employed people can use their PTA to print off a tax return, and employees can access their tax contributions and earnings. Both of these things can be used to apply for a loan, home rental or mortgage.

If you are self-employed or own a business you will probably employ an accountant. Your accountant is not able to set up your personal tax account for you as it is against regulations. However, they may ask you for information which you can easily access. This will very often speed up the accounting process, saving you money.

We at K.A.Farr encourage our clients to sign up for an online personal tax account at their earliest convenience. This can help us access your information such as;

  • NIC records,
  • SA302s
  • Pay and tax details

This is often really useful for previous years information where the hard copy may have been lost or misplaced.

We also would advise you to encourage your employees to register for a PTA. This will allow them to keep their personal details up to date and view their tax codes and pension information. This should result in fewer queries to your payroll or personnel department.

Note To Our Clients

With the increase in digitisation of HMRC’s processes, some notifications have also changed.

We no longer receive a copy of the following:

  • Statement of account
  • Notice to file a tax return
  • PAYE coding notices

Therefore, when you receive these notifications it is important that you forward them to us.

If you would like any further information or help with personal tax accounts, contact us to speak to our friendly team.

01704 211434 or email info@kafarr.co.uk