The latest figures show that 17% of UK taxpayers have signed up for the new self-service online accounts since the launch of the system last year.
While personal tax accounts will not be obligatory, they are a major component of the five-year plan to create a 21st century tax authority with the HMRC. Part of this overhaul will see the introduction of Making Tax Digital for business, which will necessitate obligatory quarterly reporting for all companies; plans for which have been called hurried and pointless.
Personal tax accounts were launched at the end of 2015; giving taxpayers an online account enabling users to view and manage their tax information, the service includes:
Estimating income tax & tax code details.
Self-assessment tax return filing.
Rather than waiting for a cheque or payable order users can claim a tax refund directly into their bank account and receive it within 3-5 working days.
Manage tax credits throughout change of circumstances throughout the financial year.
Manage state pension & marriage allowance.
Manage benefits received from work, such as medical insurance or company car allowance.
To set up an HMRC online tax account, users need a National Insurance number and Government Gateway account and can apply via the gov.uk website.