How to Set Up Your Personal Tax Account With HMRC

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How to Set Up a Personal Tax Account: A Step-by-Step Guide

Going freelance or becoming self-employed is an exciting step towards financial independence. However, it also comes with the responsibility of managing your taxes efficiently. One of the first and most crucial steps in this journey is learning how to set up a personal tax account with HMRC – the UK’s tax, payments, and customs authority.

The good news? Your personal tax account acts as a secure online space, making it significantly easier to interact with HMRC, track your income and tax records, and submit your tax returns. Even better, setting up a personal tax account is completely free and should take only about ten minutes from start to finish.

In this comprehensive guide, we will walk you through the process of how to set up a personal tax account, ensuring that you have all the necessary information at your fingertips to manage your taxes with ease and confidence.

Why Set Up a Personal Tax Account?

Understanding how to set up a personal tax account is essential for anyone who wants to efficiently manage their tax obligations. Setting up your personal tax account with HMRC offers numerous advantages:

  • Easier tax management – A personal tax account provides a centralised hub where you can manage everything related to your taxes online, reducing paperwork and simplifying tax submissions.
  • Quick access to tax information – With a personal tax account, you can easily check how much income tax you’ve paid over the past five years, monitor tax refunds, and ensure you’re paying the correct amount of tax.
  • Simplified tax return process – Submitting your tax returns becomes more straightforward as you can track your income, expenses, and deadlines in one place, ensuring you stay compliant with HMRC regulations.
  • Retrieve essential tax details – Your personal tax account allows you to access key details such as your National Insurance number and Unique Taxpayer Reference (UTR), which are necessary for managing your tax affairs.
  • Direct communication with HMRC – Receive important tax updates and notifications directly from HMRC. This reduces the need to spend time on phone calls or writing letters to resolve tax queries.
  • Manage tax credits and benefits – If you are eligible for tax credits or Child Benefit, you can easily manage them through your personal tax account.

Now that you understand why a personal tax account is beneficial, let’s go through the exact process of how to set up a personal tax account with HMRC.

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How to Set Up a Personal Tax Account: Step-by-Step Guide

1. Gather Your Documents

Before you begin the process, ensure you have the following documents ready:

  • Your National Insurance (NI) number – This is essential for verifying your identity with HMRC.
  • A form of identification – Either a valid UK passport or a recent P60 (if you are employed) will be required to confirm your identity.

2. Visit HMRC’s Website

Head over to HMRC’s Personal Tax Account page. Here, you will see an option to ‘Start now’—click on this to proceed.

3. Create a Government Gateway Account

To access your personal tax account, you need a Government Gateway user ID and password. If you already have one, sign in with your existing credentials. If you don’t have an account yet, select ‘Create sign-in details’ under the ‘New users of Government Gateway’ section.

4. Verify Your Email Address

  • Enter your email address when prompted.
  • Check your inbox for a verification code sent by HMRC.
  • Enter the verification code on the website and click ‘Continue’ to proceed.

5. Enter Your Name and Set a Password

  • Provide your full name as it appears on your official documents.
  • Create a strong password (minimum of 10 characters) to ensure your account remains secure.

6. Receive Your Government Gateway ID

Upon successful registration, you will be issued a 12-digit Government Gateway user ID. Keep this safe, as you will need it to log in to your personal tax account. (Note: This is not the same as your 10-digit UTR, which is used to identify you for Self Assessment.)

7. Choose Your Account Type

At this stage, you will be asked to select the type of personal tax account you need. The available options include:

  • Individual – For personal tax accounts, Self Assessment, tax credits, and Child Benefit.
  • Organisation – For limited companies, partnerships, trusts, and charities.
  • Tax Agent – For accountants or bookkeepers managing client tax accounts.

If you are setting up your personal tax account for yourself, rather than on behalf of a business or a client, choose ‘Individual’ and click ‘Continue’.

8. Set Up Security and Verify Your Identity

  • Provide your phone number for two-step verification. This adds an extra layer of security to your account.
  • Choose your preferred method for receiving security codes (text message, phone call, or authentication app).

9. Complete Personal Verification

To fully activate your account, HMRC will ask you to confirm personal details such as:

  • Your National Insurance number
  • Your date of birth
  • Employment status and income details

Make sure you enter all the details accurately to avoid delays in account verification.

10. Start Using Your Personal Tax Account

Congratulations! You have successfully completed the process of how to set up a personal tax account. You can now log in and begin managing your tax affairs online with ease.

Need Help Managing Your Taxes?

At Accounting Wise, we specialise in helping self-employed professionals and business owners stay on top of their financial responsibilities. From expert tax advice to full account management, we’re here to support you at every stage.


Need help with tax accounts? Get started today with Accounting Wise today!.

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