Digital Tax Accounts – have you checked yours yet?
In his March 2015 budget, the chancellor announced that self assessment tax returns would soon become a thing of the past and would be replaced by digital tax accounts. HMRC has announced an ambitious (and somewhat controversial) digital strategy aimed at making it’s dealing with taxpayers entirely digital by 2020.
By now every individual in the UK should have their own digital tax account, one of the first steps in the process. If you haven’t viewed yours already you can do so by logging in at https://www.gov.uk/personal-tax-account.
You can sign in using your government gateway which you would have received if you have previously set up an HMRC online account or registered for Self Assessment. There will also be various additional security questions to ensure you are who you say you are.
You can also sign in using GOV.UK Verify, but you will be limited to the amount of services you can use.
Once logged in you can use your personal tax account to obtain various information as well as managing different aspects of your HMRC account including the following
- Checking your state pension forecast to obtain an estimate of how much state pension you will receive and when you will start receiving it
- Renewing your tax credits claim and informing HMRC of changes in your circumstances
- An estimate of your taxable income and the tax you will have paid by the end of the current tax year.
In future HMRC plan to use these accounts to capture even more income details electronically such as bank interest, dividends, rental income and self employment income.