Next month (October 2014) HMRC will be sending out full annual tax summaries for the first time.
In 2010 the Coalition promised every tax payer an annual statement of their tax position: not just the Income Tax and National Insurance paid, but also where the money was spent. Four years one and this promise is about to become a reality (well, in October 2014) as the first tax summaries will be sent out, but not to everyone.
So who will get one? You’ll get an annual summary statement if you pay tax under:
- Self-assessment and have registered and enrolled for HMRC’s online services; or
- PAYE and receive a P2 notice of coding or a P800 tax calculation
So what will you get Initially, the statements will only cover your tax position for 2012/2013 and at first only selected taxpayers will receive one.
How will you receive it? If you’re registered for online Self-Assessment you’ll be able to access your statement by logging on to the HMRC website in the usual way and selecting the tax summary option. If you’re not registered you’ll receive your statement in the post.
So if you haven’t already registered for online services you’ll be able to view your 2013/14 tax summary soon after you submit your return for that year.
What benefit is the Tax Statement to you? The tax statement is simply for information purposes, but could be very useful particular in regards to national insurance as to qualify for a full state pension under the new single teir pension rules, which take effect in April 2016, you’ll need to pay the correct amount of NO contributions for 25 years. The annual tax statements will be a handy record in which you can check that you’ve paid enough in contributions.
Source of this information has come from Tips & Advice Tax