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How To Avoid Paying Too Much Tax Without Paying A Tax Advisor.

Personal Tax account is an important tool that HMRC uses to implement making tax digital for individuals.

This account has all the information that relates to a taxpayer.

Information such as their full name, their pay as you earn information, employment history from previous years.

For self-employed taxpayers, it also has their self-assessment details and tax calculation.

                IMPORTANCE OF PERSONAL TAX ACCOUNTS TO INDIVIDUAL IN UK

The following are some of the advantages of having a personal tax account:

  1. The taxpayer would have all the information HMRC hold about them. The information could be updated if there seems to be an error.
  2. A taxpayer can obtain employment history and self-employment history of work done in the UK.
  3. They can print out their tax overview and tax calculations to provide external persons such as mortgage lenders, Thereby saving on accountant cost.
  4. They could adjust their tax code within a tax year, add benefit received from employers thereby reducing tax overpayment or underpayment.
  5. Also, a taxpayer could update their information on personal tax account such as the change in address e.t.c

 

              HOW TO SET UP A PERSONAL TAX ACCOUNT.

  1. Click on the link for personal tax accounts. 
  2. If you’ve got a Government user ID, you put your user ID in, and your password.
  3. You would need to set up your security access code.
  4. If you don’t have a Government gateway ID already, then you need to create one.
  5. To create one click on  Government gateway link     
  6. Finally,  the taxpayers can input all the information required. (Such as full name, address, how long they have lived at the address e.t.c.
  7. HMRC would as a result issue the User ID user that would be used to login in the personal tax account. We would advise that this information is kept safe.
  8. Set up your security code that would be needed anytime you need to sign in.

     CONCLUSION ON PERSONAL TAX ACCOUNT.

It is actually a very good tool that could save individuals money and time. Therefore, I would recommend you set one up. It could take up to 15 minutes to set one up. If you would like to have further advice on setting up a personal tax account or other tax issues, Kindly contact us and we would happy to provide timely  advice to you