Five Reasons to Set Up a Personal Tax Account

Five Reasons to Set Up a Personal Tax Account

Sara White
Editor, Accountancy Daily, published by Croner-i 
The Association of Taxation Technicians (ATT) is encouraging taxpayers to set up a Personal Tax Account (PTA) to monitor their tax affairs
The call is after HMRC renewed their commitment to PTAs as part of a proposed single digital account for taxpayers, at their annual stakeholder conference, held at the end of last month. This shows PTAs are a key part of the tax authority’s 10-year strategy. 
The PTA lets people check and manage their tax affairs. It was launched in November 2015 and HMRC reports that over 14m people accessed their account in the last tax year (2020/21). That saw a 21% increase in PTA sessions compared to 2019/20, with over 53m user sessions. 
Now ATT says if people have not already set up a PTA, here are five reasons why they might find it useful: 

Here are 5 Reasons why it is wise to set up a separate 'Personal Tax Account'

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1. Check Your State Pension and History of National Insurance Contributions

In your PTA you can see your National Insurance record which counts towards your state pension. You can see how many qualifying years you have recorded and if there are any gaps. HMRC report that the ‘Check your State Pension’ service is popular in the account with more than one million sessions per month. 

2. Avoid Queuing On Helplines

There are many simple tasks that can be completed quickly and easily online via the PTA. This avoids queuing on HMRC helplines which continue to be very busy because of the Covid-19 pandemic. Basic tasks include changing your address or confirming and printing your National Insurance number. It is also possible to claim tax reliefs such as marriage allowance and keep track of your applications for reliefs or allowances online. 

3. Complete Your Tax Return

If you have self-employment or rental income, you can complete your tax return on line through the PTA. It is easy to monitor your progress and, when complete, you can see your tax calculation, how much you have to pay and when. It is also easy to update your return and claim reductions in payments on account if your circumstances have changed and your income has fallen. 

4. Report a Change in Circumstances for Tax Credits

For those within tax credits, it is possible to report changes of circumstances quickly and easily to HMRC through the PTA to ensure that you receive the correct amount of tax credits and do not end up running up over or underpayments as your circumstances change.

5. Check Your PAYE Details

For those with employment income, you can use the PTA to check the details of your employment(s), pension(s) and other income information which HMRC holds and correct anything that is wrong. It is also possible to view details of how your tax code has been worked out. You can also claim tax relief for home working, which will be relevant for a lot more people as a result of the pandemic. 

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