HMRC begin testing Personal Tax Accounts

24 August 2015

HMRC is introducing secure digital tax accounts for individual customers, which is also going to help employers.

The new Personal Tax Account brings together each individual’s details in one place with all the information those customers need to do business with HMRC. It means that employees will be able to check for themselves things like their tax code and how it’s been calculated.

This new service, which will work like an online bank account, was introduced last month. HMRC are working with a wide range of employers and asking them to invite their employees to test the accounts so we can get their feedback to ensure it meets their needs before they develop and expand what customers can do using them.

Once they’ve registered, employees testing the service will be able to update their information and use the ‘Check your Income Tax estimate’ service. They will be able to check their sources of income subject to PAYE, their personal allowances, their tax code, and an estimate of the tax they will pay. If they see that details are incorrect, they’ll be able to change them online. This part of the service will eventually replace the P2 notice of coding sent to PAYE customers.

HMRC will be adding more services to the Personal Tax Account and aim to make it available to more customers between now and the end of the year. By early 2016 HMRC expect 10 million customers to have access to their own account. By 2020, everybody in the UK will have one. They will be able to register, file, pay and update their information, at any time of the year, using the digital device of their choice.

HMRC provided this update in their latest Employer Bulletin.