Get your tax on track: how to MOT your personal tax account
Nearly half of UK adults (46%) have never checked their personal tax account, a third of these because they didn’t know they could, a quarter because they didn’t know how to and 23% didn’t know they had one!
It’s perhaps not too surprising that almost a third (29%) of us want a better understanding of how to handle our personal tax matters.
The good news is that we can all access our online tax account in just a few clicks through Post Office, and HMRC’s secure personal tax account service.
Your personal tax account can be used for a range of benefits, from claiming a tax refund, checking how much your state pension will be, checking your income tax code and finding your National Insurance number. With that in mind, we’ve prepared five top tips to help you take control of your personal tax account:
1. Getting started
To access your personal tax account, you’ll first need to verify your identity with Post Office. You’ll need your phone and two types of ID (e.g. driving licence, passport or bank card) and approximately 15 mins. Post Office have quickly and securely helped over 2 million people access GOV.UK services, such as personal tax accounts.
2. Check your state pension
Planning for retirement is essential for all and you can track how much your state pension will be based on your current contributions through your personal tax account. Post Office research found that those approaching retirement are least likely to have accessed their personal tax account (54% of 45-54 year-olds have not), despite the fact it can be used to keep up to date with state pension and national insurance contributions. You can also see when you can start claiming your state pension and how much you can expect to receive when you retire.
3. Marriage allowance
The marriage allowance lets you transfer £1,250 of your Personal Allowance to your husband, wife or civil partner. This can reduce their tax by up to £250 this tax year. To benefit as a couple, your annual income must be less than your partner’s and lower than £12,500. If you have your partner’s national insurance number, you can apply via your personal tax account.
4. National Insurance contributions
To check information relating to your National Insurance number or contributions, simply log into your account and click ‘National Insurance’ in the main menu. Here, you can view the confirmation letter of your National Insurance number, so there’s always somewhere secure to retrieve it in case you lose your card, as well as checking your contributions to date and identifying gaps in your record.
5. Self-assessment made simple
If your self-employed or have a second job, your personal tax account is where you can view and manage your annual tax returns, track if you owe any tax or if you’re owed a tax rebate.
For more information regarding Personal Tax Accounts and how to register through Post Office please visit: https://www.postoffice.co.uk/government-verify
*Research by Censuswide from 11th April 2019 – 15th April 2019 with 2,101 nationally representative full or part-time adult employees.