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:
- The taxpayer would have all the information HMRC hold about them. The information could be updated if there seems to be an error.
- A taxpayer can obtain employment history and self-employment history of work done in the UK.
- They can print out their tax overview and tax calculations to provide external persons such as mortgage lenders, Thereby saving on accountant cost.
- They could adjust their tax code within a tax year, add benefit received from employers thereby reducing tax overpayment or underpayment.
- 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.
- Click on the link for personal tax accounts.
- If you’ve got a Government user ID, you put your user ID in, and your password.
- You would need to set up your security access code.
- If you don’t have a Government gateway ID already, then you need to create one.
- To create one click on Government gateway link
- 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.
- 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.
- 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