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By What UK Taxpayers Need to Know
Managing your personal tax affairs can sometimes feel complicated, particularly if you are self-employed, have multiple sources of income, receive pension income, or have changing employment circumstances.
Fortunately, HMRC provides an online service called the Personal Tax Account, which allows individuals to view and manage various aspects of their tax affairs online.
Understanding how to use your HMRC Personal Tax Account can help you check your tax information, identify potential discrepancies and stay informed about your tax responsibilities.
At TT Accountancy Services (TTAS), we help individuals, freelancers, sole traders and business owners understand their tax obligations and prepare accurate tax returns.
What Is an HMRC Personal Tax Account?
Your HMRC Personal Tax Account is an online account that allows you to access certain personal tax information and services.
Depending on your circumstances, you may be able to:
- Check your Income Tax estimate
- View your tax code
- Check your PAYE information
- Check your National Insurance record
- Claim certain tax reliefs
- Manage Self Assessment
- Check payments
- Update certain personal details
- Access other HMRC services
The information available depends on your circumstances and the HMRC services linked to your account.
Why Should You Check Your Personal Tax Account?
Checking your account regularly can help identify potential errors.
For example, you might notice:
- An incorrect tax code
- Missing employment information
- Incorrect estimated income
- Missing pension information
- Incorrect National Insurance records
- Unexpected tax liabilities
Identifying problems early can make them easier to correct.
Your HMRC Tax Code
Your tax code helps your employer or pension provider calculate how much Income Tax to deduct from your pay.
If your circumstances change, your tax code may change.
You should check your tax code when:
- Starting a new job
- Leaving employment
- Receiving a pension
- Getting a company benefit
- Starting or stopping certain benefits
- Your income changes significantly
An incorrect tax code can result in paying too much or too little tax during the year.
HMRC Personal Tax Account and Self Assessment
If you are self-employed or have income that requires you to complete a Self Assessment tax return, your Personal Tax Account can provide access to relevant Self Assessment services.
However, simply having an online tax account does not mean your tax return is automatically correct.
You are still responsible for reporting relevant income and expenses accurately.
What If the Information Is Wrong?
Don’t ignore discrepancies.
If information in your Personal Tax Account appears incorrect, investigate it promptly.
Depending on the issue, you may need to:
- Contact your employer
- Contact your pension provider
- Update information with HMRC
- Correct your Self Assessment information
- Seek professional tax advice
Keeping supporting documents can help when resolving discrepancies.
Is a Personal Tax Account the Same as an Accountant?
No.
Your HMRC Personal Tax Account is a digital service provided by HMRC.
An accountant provides professional advice and assistance with matters such as:
- Tax planning
- Bookkeeping
- Self Assessment
- Business accounts
- Corporation Tax
- VAT
- Payroll
- Financial reporting
The two can work together.
How TTAS Can Help
TT Accountancy Services can assist with personal and business tax matters, including:
- Self Assessment
- Tax planning
- Bookkeeping
- Annual accounts
- Corporation Tax
- VAT
- Payroll
- Business advisory
If you’re unsure what information HMRC needs from you, professional guidance can help.
Your HMRC Personal Tax Account can be a useful way to monitor your tax information online.
Checking it periodically can help you identify errors, understand your tax position and keep your personal tax affairs organised.
However, if your tax affairs are complicated, don’t rely solely on the information displayed online.
Need Help With Your Tax Affairs?
Speak to TT Accountancy Services for professional tax and accounting support across London and the UK.
