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HMRC digital personal tax accounts: how it will affect your tax return and personal information


Updated on 15 December 2015 | 8 Comments

Taxman claims that sorting your taxes out is about to become easier...

HM Revenue & Customs (HMRC) has launched its new system of personal tax accounts.

Similar to online banking, these digital accounts will allow people to see their tax details and make payments in real time. It’ll also be easier to contact HMRC through services like web chat and virtual assistant, which will hopefully minimise issues with customer complaints.

The new service is being phased in, so that all personal taxpayers will have digital accounts by next year, as well as five million small businesses. Two million businesses already use one.

Handling tax payments digitally should, in theory, stop the build-up of overdue tax or refunds owed at the end of each financial year.  

HMRC has been slated recently for taking too long to answer the phone and advising taxpayers to contact them through Twitter instead.

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Revolution

HMRC wants to put all of the information it has on taxpayers into one place, including data from employers, banks, building societies and other government departments.

It’ll eventually eliminate the current annual tax return for most taxpayers.  

Speaking at HMRC’s stakeholder conference in London, the Financial Secretary to the Treasury, David Gauke said: “Giving customers the ability to manage their tax affairs online is our latest step towards a fully digital tax system. This Government is determined to revolutionise how we deliver public services and the tax system is no exception”

New headache for landlords and the self-employed

From 2018, self-employed people and landlords will have to update HMRC every quarter if this activity is their primary source of income. Even if it’s their secondary income, so long as it is worth more than £10,000 and the main income is from employment or from a pension, they’ll also have to update quarterly.

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Comments



  • 17 December 2015

    It will not work because the government will employ some spiv, crap computer people who soak them for cash and provide a rubbish system.So do not believe anything the government tell you as it is lies and aimed at fooling the gullible. The tax offices in the 1960s were brilliant. I ( a Chartered Acountant) wrote to the local inspector and he replied within a week. All settled in three! Now you will get no human intervention. Totally wrong.

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  • 17 December 2015

    It's an excellent idea in principle, but after years of problems with HMRC I have no confidence in their ability to set up and run such a system properly.

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  • 15 December 2015

    I do not have to self assess for tax. I do think it a good idea, online is the future whether we like or not. BUT ... would I trust the HMRC (or any new Government Department computer system and those that work it? NO! I don't trust them like I no longer trust NHS, DVLA (what a money spinner the new vehicle licensing system is for them!) and of course the Banks. They only makes changes to suit themselves to make collecting taxes and charges easier and quicker for them, certainly not 'better' for the UK citizen.

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