HMRC Tax Accounts, what are they?

Confused man at desk

Personal Tax Account

HMRC introduced Personal Tax Accounts back in 2015 and if you haven’t yet signed up for one, then perhaps now is the time to do so.  It is an easy process, you just need your National Insurance number, and either your most recent payslip, P60 or passport details to create an account.

Once you are in, there is lots of useful personal information for you to access at the touch of a button.  You can apply for and see which tax credits are relevant for you.  You also can check if there are any gaps in your National Insurance record (pertinent to earning your State Pension). 

If you are employed, you will be able to see you tax code and update the information HMRC hold for you regarding any benefits you receive.  You can also see your income from previous years.

If you are registered for self-assessment you will be able to file your annual tax return and obtain information from previous years. 

You are also able to transfer your marriage allowance through your personal tax account.

It can often be a long and painful process to call HMRC to make changes to personal data, or to check information you require.  With the personal tax account, you can make life simpler for these jobs so what are you waiting for – sign up for yours today!

Business Tax Account

Like the Personal Tax Account, if you are self-employed or a limited company, you may find it useful to open a Business Tax Account. 

With Making Tax Digital now underway, HMRC have said that there will be certain jobs that businesses will only be able to action through their Business Tax Account and there will be some correspondence which HMRC will only accept through the account.  This will be the case even if you have an agent. 

The advantage of having a Business Tax Account is that you will be able to see up to date positions for all your taxes, for example Corporation Tax, VAT and PAYE.  You will see upcoming pay and filing dates together with amounts due.  You will also be able to make payments through the account.

If you are a client and need any help setting up either of the above accounts, we would be more than happy to assist.  Please call us on 01908 597 904.