The benefits of Personal Tax Accounts for employees

Online Personal Tax Accounts (PTAs) were launched by HMRC in December 2015, and currently over 15 million people have set one up.

Individuals can use their PTAs for a variety of tax and benefit related matters, including:

  • Completing and submitting a self-assessment income tax return;
  • Claiming a tax refund;
  • Checking and managing tax credit claims; and
  • Checking their State Pension entitlement.

PTAs can be particularly useful for employees on PAYE, who can:

  • Print proof of their National Insurance number.
  • Download their pay and tax details for the last four years.
  • Claim tax relief for allowable expenses (such as cleaning a uniform or replacing tools).
  • Update details on employment benefits received, such as company cars and medical insurance.
  • Check their tax code, and the income tax estimate which has been used to calculate this.

The PTA is quick to set-up, secure and can often be a quicker way to get information than phoning HMRC. 

Encouraging your employees to set up a PTA could therefore reduce the number of payroll queries you receive and help them to resolve their issues more quickly.  In particular, next time an employee queries why their tax code has changed, pointing them in the direction of the PTA will allow them to check the reason for this, and correct it, without having to call HMRC.

More information on the PTA can be found here.  To set up a PTA, employees should go here

Posted in: Employment