Insights

Do your eyes glaze over when you get HMRC’s letter in the post informing you what your tax code is? And can you remember your NI number off by heart? Usually people don’t and they also tend not to understand what the tax codes mean.

Now, two new online services launched by HMRC will help to clarify some of the former mystery around tax codes and NI numbers. Individual taxpayers will be able to view their national insurance confirmation letters online and decipher their tax code without having to log in to an existing account. Here’s what has been launched recently.

1. Store my National Insurance Number

This is a feature that allows taxpayers to view their national insurance (NI) confirmation letter online or via the HMRC app, rather than waiting up to 15 days for the tax authority to resend the letter by post.

It is accessible via a taxpayer’s Personal Tax Account (PTA) or the HMRC smartphone app, individual users can generate a copy of their NI letter and save it to their device as a PDF, store a copy of the letter in their device via a digital app wallet (Google Wallet or Apple Wallet) enabling access to it in the future without signing into their digital account, or they can print or share the letter directly.

To protect taxpayers from privacy breaches, HMRC recommends saving the access details using a security code or pattern set on the relevant device. It is still possible to contact HMRC by telephone to request information too.

2. Check what your tax code means tool

This online service was originally launched in December 2022 and then updated in June 2023. The service enables taxpayers to decipher what their personal tax code means. Tax codes can be found on payslips, ‘Tax Code Notice’ letters from HMRC or by logging into a Personal Tax Account (if held) without having to log in to any of the tax authority’s services.

It is a very handy utility and will allow taxpayers to check that their tax code is correct more quickly, avoiding having to wait for possible rebates or unexpected tax bills. It will explain what the letters in a tax code mean and help with information about what to do if they think their tax code is incorrect. For self-employed taxpayers, residential buy to let landlords or partnerships, it will also breakdown how much tax will be due (weekly, four-weekly, monthly and yearly).

These two new services should prove helpful for taxpayers and will ease pressure on telephone help lines which are notoriously busy. If you have any questions about your tax compliance or would like some help with tax planning to reduce future tax liabilities, please contact us via partners@rjp.co.uk.