Published On: Sun, Jan 21st, 2024

This important account shows your state pension and allows you to complete tax return | Personal Finance | Finance


Britons who want to better understand their financial situation and tax affairs have been encouraged to set up a personal tax account.

The centralised Government account holds important information including your National Insurance number and state pension record.

Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, told : “Logging into your personal tax account is something all Britons should be encouraged to do, not only because all of your tax information is stored in one place but also because it gives users greater oversight and control over their own finances.

“‌Log into your personal tax account and you will not only discover key information about your tax affairs that is very useful to track but you can also action everyday tax and benefits tasks without having to phone HM Revenue & Customs directly.”

The account is easy to set up and you can then access the account using you Government Gateway ID and password, which can also be created on the Government website.

Helpful features of the personal tax account

National Insurance number – This essential number ensures all NI contributions and taxes are recorded to your name and has to be provided to employers and pension providers

Contact information – As a person’s contact details are stored here, a person can change these details to update how HMRC contacts them by post or online. Ms Haine said: “Remember, it is your responsibility to update this information and doing it digitally is so much more efficient.”

Tax code – This is also logged in the account and is used by employers and pension providers to calculate how much tax to deduct from your wages or pension. It is your responsibility to make sure your tax code is correct. Tax code errors can also be fixed through the account

Checking state pension record – There is a state pension forecast calculator to check how much state pension you are on track to receive. The account also shows if you have any gaps in your NI contributions and guidance on how to pay voluntary contributions

Self assessment tax return – This can be completed an filed through the account. This is especially timely with the January 31 deadline to file a tax return coming up. Ms Haine said: “Once the return is completed, the app offers a thorough breakdown of how much tax you owe, whether you have outstanding payments to make and details of any fines for not paying on time.”

Annual tax summary – This breaks down your total income, your tax-free amount and how much tax and National Insurance you will pay this tax year, as well as how much you paid in previous tax yearss. This also shows how your taxes are spent by the Government

Benefits entitlement – The account shows claimants when their next benefit payments are. Parents can also check if they are entitled to Child Benefit through the account

Applying for Marriage Allowance – This works by the higher earner in a marriage couple transfering £1,260 or their personal allowance to their spouse or civil partner. There is also a calculator tool to check how much you could save through the allowance for this tax year

Asked how often people should check their personal tax account, Ms Haine said this depends on how you use it. She said: “Those who file a self-assessment tax return may check in more often, either to file a tax return, pay their tax bill or to monitor their tax code both before they file their tax return and after.

“The start of the tax year can also be a good time to check into your tax account, particularly if you receive an alert that your tax code has changed.

“Changing jobs may also be a good time to log in and update your employment details if the information has not filtered through from your old or new employer – while logging in when you have moved home to update your details is also important.

“As with any system that holds extensive information about you, such as a credit record, it is always wise to keep tabs on the information stored because mistakes can happen.

“It’s generally important to understand how much tax you are paying and explore ways to reduce your tax burden, something getting to grips with all the information stored in your tax account will help you achieve.”

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