How to Set Up a Personal Tax Account with HMRC (Step-by-Step Guide)

Going freelance or becoming self-employed is an exciting move. But it’s one that comes with the responsibility of managing your taxes efficiently.

To kickstart that process, you’ll need to create a personal tax account with HMRC — the UK’s tax, payments and customs authority.

The good news?
✔ Your personal tax account is a secure online space that makes dealing with HMRC far easier
✔ It’s completely free
✔ It only takes around 10 minutes to set up

In this guide, we’ll walk you through exactly how to set up your personal tax account, step by step, and explain why it’s so important.

Why You Should Set Up a Personal Tax Account

Setting up a personal tax account with HMRC comes with several benefits, especially if you’re self-employed or freelancing.

Benefits of a Personal Tax Account

With a personal tax account, you can:

• Manage all your taxes online, in one place

• Track your income and expenses throughout the tax year

• Keep on top of important tax deadlines

• Submit your Self Assessment tax return easily

• Check how much income tax you’ve paid over the last five years

• Manage tax credits and benefits

• Update personal details without contacting HMRC

• Find your National Insurance number or UTR in a few clicks

• Receive important updates directly from HMRC

It also reduces the need to write letters or sit on hold trying to speak to HMRC.

How to Set Up Your Personal Tax Account with HMRC

Follow these 10 simple steps to get your account up and running.

1. Get Your Documents Ready

Before you start, make sure you have:

• Your National Insurance number

• A passport or a recent P60

2. Visit HMRC’s Website

Go to the Personal Tax Account page on HMRC’s official website and click “Start now”.

3. Create a Government Gateway Account

You’ll be asked to sign in using your Government Gateway user ID and password.

If you don’t already have one, click “Create sign in details” under New users of Government Gateway.

4. Verify Your Email Address

• Enter your email address

• You’ll receive a verification code

• Enter the code and click Continue

5. Enter Your Name and Create a Password

• Enter your full name

• Create a strong password (10 characters or more)

6. Make a Note of Your Government Gateway ID

You’ll now be given your Government Gateway user ID — a 12-digit number.

⚠️ This is not the same as your UTR (Unique Taxpayer Reference), which is a separate 10-digit number used to identify you or your business for tax purposes.

7. Choose the Type of Account You Need

You’ll be asked to select one of the following:

• Individual – personal tax, Self Assessment, tax credits, Child Benefit

• Organisation – limited companies, partnerships, trusts, charities

• Tax agent – accountants and bookkeepers

If this account is for you personally, select Individual and click Continue.

8. Set Up Extra Security

To keep your account secure, HMRC will ask you to:

• Provide a phone number

• Choose how you receive security codes when signing in

9. Verify Your Identity

You’ll now need to confirm your identity by entering:

• National Insurance number

• Date of birth

• Information about your income and employment status

Follow the on-screen prompts carefully.

10. Your Personal Tax Account Is Ready 🎉

That’s it! Your HMRC personal tax account is now set up and ready to use.

Don’t Forget the HMRC App

HMRC also offers a free mobile app, making it even easier to manage your taxes on the go.

What You Can Do with the HMRC App

• Check your tax code, NI number and UTR

• View income details and tax payments

• See tax credits and State Pension forecast

• Pay or estimate Self Assessment tax

• Set payment reminders

• Update personal details

• Claim tax refunds

• Check gaps in National Insurance contributions

• Manage Help to Save accounts

You can sign in using your Government Gateway ID, then use a PIN, fingerprint or facial recognition for quick access.

What Happens Next?

You can now sign in at any time to:

• Manage your taxes

• Update personal information

• Submit your annual tax returns

Remember to keep your details up to date and complete your Self Assessment each year through your personal tax account.

Need Help Managing Your Taxes?

If you’d like support with managing your personal tax affairs, get in touch:

📧 [email protected]
📞 0151 440 3604

Good luck — and welcome to self-employment!