Five million UK taxpayers now using digital accounts, says HMRC

HM Revenue & Customs (HMRC) claims that as many as five million UK taxpayers have now started using personal digital tax accounts (PTA) in anticipation for Making Tax Digital (MTD).

The figure, which comes from HMRC’s own data, shows that millions of businesses and self-employed taxpayers across the country are preparing for the tax authority’s systems overhaul in advance, in order to ensure a smooth transition to an all-digital tax environment before implementation dates.

PTAs were originally launched in December 2015 – and all UK Small and Medium-sized Enterprises (SMEs) and self-employed taxpayers will need to adapt to an online system under MTD reforms.

According to HMRC, at current, the following online services are available:

  • Income tax estimates
  • Tax code estimates
  • Online filing of tax returns
  • Ability to claim tax refunds (within 3-5 days)
  • Tax credit management
  • State pensions checks
  • Marriage allowances
  • Work benefits
  • Car details
  • Medical insurance

The Making Tax Digital project has been described as the biggest change to the way taxpayers will interact with HMRC since the introduction of PAYE.

61 per cent of UK taxpayers recently told an HMRC webinar that they felt upgrading to and interacting with MTD systems would be an ordeal for British businesses.

Those concerned are advised to consult specialist tax advisors for invaluable advice.