While managing your tax affairs can be time-consuming and complex, there are several tools available to help simplify the process – one of these is a personal tax account.

Personal Tax Accounts (PTAs) were introduced by HM Revenue & Customs (HMRC) to make managing taxes accessible and convenient.

Many people wonder what is a personal tax account and how to use personal tax account services to simplify their affairs.

Let’s clarify…

What is a personal tax account?

A Personal Tax Account is an online portal that allows individuals to view and manage their finances over the internet.

This secure digital platform provides a range of services tailored to the needs of the individual taxpayer.

This makes it an invaluable tool for staying on top of tax obligations, helping to make financial management easier and more efficient.

Is it the same as self-assessments?

Personal Tax Accounts and self-assessment both relate to managing taxes, but each serves a different purpose.

A PTA allows users to access a comprehensive overview of their tax affairs. This includes income details, National Insurance (NI) contributions, tax contributions, and benefits.

Self-assessment, on the other hand, is the process through which individuals can report their income, capital gains, and other financial details to HMRC on an individual basis.

PTAs can assist the self-assessment process by providing a centralised platform for accessing relevant information about your circumstances and managing key tasks.

Do you need to make an HMRC personal tax account?

Creating an HMRC Personal Tax Account is not mandatory, but it’s highly recommended for all taxpayers in the UK.

Whether you’re employed, self-employed, receiving benefits, or retired, having a Personal Tax Account offers numerous benefits and simplifies various aspects of managing your affairs.

What are the benefits of having a tax account?

A Personal Tax Account is a convenient way to access information.

It offers real-time updates on tax status, payments due, and allowances, empowering users to stay informed and make informed financial decisions.

Personal Tax Accounts offer a range of self-service options that enable users to manage their personal details, report changes, and handle aspects of their tax affairs independently, in a secure and accessible manner.

How to use your tax account

Using your tax account is straightforward. Once you’ve created an account and logged in, you can:

  • View your tax code and tax calculation
  • Check your NI record
  • Manage tax credits and benefits
  • Make payments or set up payment plans
  • Update personal information such as your address or contact details
  • Access correspondence and notices from HMRC

The platform also provides helpful guidance and resources to assist you in navigating your tax affairs.

Comprehensive personal tax advice from Digital Accounting & Finance

Getting your personal tax affairs in order is essential to reduce the overall burden and ensure you meet your obligations.

The consequences of failing to do so can be costly, as well as time-consuming, to put right.

Intelligent tax advice can save you time, increase your take-home income, and reduce the risk of making costly mistakes on your tax return.

Our specialist personal tax advice team can help you reduce your overall tax liability and ensure that you meet your obligations.

Contact us for personalised advice and guidance about tax and financial planning.