The HM Revenue & Customs (HMRC) app was launched in 2023 and has quickly become a key tool for many, with over 80 million interactions.

Designed for convenience and efficiency, the app stands as a crucial resource for managing tax affairs.

Upon completing the initial setup with your Government Gateway information, the app offers secure login options including facial recognition technology, fingerprint authentication and a personalised six-digit PIN.

The app offers its users numerous benefits.

Monitor your tax payments and stay updated on legislation

The app helps with tracking your Self-Assessment tax liabilities and facilitates making payments through open banking. It also supports refund claims and the calculation of your estimated net income.

Given the shift to online tax returns, it is crucial to know precisely what you owe and their deadlines, ensuring adherence to the latest tax legislation.

Access your tax details through HMRC

The app enables you to view important tax information, such as your Self-Assessment reference number, National Insurance number (which you can add to your digital wallet) and details of your employment income for the current and the last five years.

Accessing this information helps the completion of your digital tax returns accurately and punctually, providing a window to rectify any errors in advance of the submission deadline.

Understand your tax commitments (National Insurance and State Pension)

The app provides insights into your National Insurance history, helping identify any gaps to ensure compliance and offers a forecast of your State Pension, aiding in financial planning for your retirement.

It introduces a new feature for claiming and reporting changes to your child benefit. This includes the ability to change your bank details if necessary, ensuring you continue to receive the same benefits.

Contribute to the improvement of HMRC’s digital services

Your app usage helps HMRC identify and enhance any challenging areas, ensuring the services remain efficient and beneficial, aiding in maintaining compliance and making informed payments.

Enhance your communication with HMRC

For those opting for digital communication with HMRC, the app becomes a hub for receiving letters and messages directly from HMRC.

It allows you to monitor the status of submitted forms and offers the flexibility to update your personal details with HMRC, such as name and address changes, which could affect your tax responsibilities.

How does the HMRC app support the transition to a more digitalised UK tax system?

Alongside the Making Tax Digital (MTD) initiative, the HMRC app aims to narrow the tax gap by requiring individuals to:

• Provide quarterly updates
• Maintain digital records
• Utilise HMRC-compatible software for MTD

This transition supports a more instantaneous tax system, simplifying tax compliance for individuals and businesses while promoting digital transformation across businesses.

In addition, MTD aims to decrease tax discrepancies caused by avoidable errors through:

• Supportive features in many software solutions
• Direct transmission of digital records to HMRC
• Increasing the accuracy of digital records

While the app offers a more user-friendly interface than the traditional online tax account, seeking advice from a professional accountant is advisable if challenges arise.

For further information on the HMRC app and how it can benefit you, please reach out to our expert team today.