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40% of London workers have never checked their personal tax account - London TV

40% of London workers have never checked their personal tax account

by London-TV in Business

Two in five (40%) of workers1 in London have never checked their personal tax account (the GOV.UK digital service allowing people to access and manage their tax details), despite the fact over a quarter (26%) would like to have a better understanding and management of their tax affairs and just 20% feel ‘very in control’ of their personal tax matters1.

New research today for Post Office has found that almost two-thirds of London inhabitants (58%) don’t know they can access their online personal tax account for a range of benefits such as instantly checking their Income Tax estimates, that National Insurance contributions are correct, submitting claims for tax rebates and updating personal details.

Across the UK as a whole, the research revealed that 25 – 34 year olds are the most active age group when it comes to personal tax accounts, with 43% having accessed their account multiple times (versus a national average of 38%)1. This is why it’s so beneficial to have a personal tax accountant check over your finances. The results also show that many of this group aren’t fully aware of what the service can be used for, with nearly a third (32%) falsely believing it can show you where your tax is spent and one in five (22%) believing it can be used to complain about how much tax they pay.

Further UK-wide research showed that Britons approaching retirement, 45 – 54 year olds, are least likely to have accessed their account (54% have not) 1, despite the fact it can be used to keep up to date with state pension contributions. It’s no wonder research suggests that up to 1/3 of UK pensions are mis-sold to people and so many individuals are left to make a mis-sold pension claim if 54% of people haven’t accessed their account. Those that do however, state the top five reasons to access their accounts as1:

  1. Check they are paying the right tax (38%)
  2. Check their state pension contributions (28%)
  3. Complete a self-assessment (25%)
  4. Apply for a tax credit or refund (20%)
  5. Check their national insurance number (19%)

Martin Edwards, Managing Director, Identity Services at Post Office said:

“Across the UK, currently nearly a quarter (22%) of people don’t think they earn enough to warrant looking at their personal tax account, which means that thousands of workers could be missing out by not taking simple steps such as checking that their pension contributions and tax code are correct. All of this can be managed easily on your personal tax account that’s accessible through Post Office Verify.

“It’s vital that we all are able to understand and manage our personal tax affairs – not just the self-employed but also carers and those with second jobs and career ‘gig workers’ too. Even if you are on a PAYE scheme but have additional benefits such as a bonus or company car, it’s really easy now to stay in control – avoiding any surprises when your annual return is due.”