With only four weeks to go until the rollout of digital tax accounts to all UK individual taxpayers, HMRC's communications strategy is likely to be dominated by online messages and YouTube videos, rather than any direct letters from HMRC.
As the April 2016 deadline approaches for the introduction of digital tax accounts, HMRC has confirmed that it has been promoting the new accounts almost exclusively online, with calls for action whenever individual taxpayers go to HMRC on gov.uk.
So far, individual taxpayers have not been contacted and since the digital tax accounts are voluntary, HMRC stresses that people will not have to take action as it is not mandatory to activate a personal digital tax account. It also added that ‘there won’t be a single date when we write to everyone about it’.
An HMRC spokesperson told Accountancy: There won't be a single date when we write to everyone about it. People will be pointed to the account as new services are added.
‘Some people were directed to the personal tax account as part of the recent self assessment filing.’
HMRC confirmed that unrepresented self employed people were informed about the new digital tax accounts when they were completing their last self assessment returns, but these are the only group who have been directly targeted.
In addition, HMRC confirmed that ‘existing communications will also include references to direct people to the account as well’. However, there was no confirmation as to whether notifications of the new service will be included when the annual tax summaries are sent out in November each year, although these are sent to all taxpayers in the UK.
Despite the sheer scale of changes to personal tax arrangements, the communications strategy has been low key.
There is also confusion about whether individuals have to set up a digital tax account, although the tax authorities have said categorically that this will not be the case.
It will take around ten minutes to set up a digital tax account online and users will need to have all their financial and bank information to hand to create an account. A YouTube video on digital tax accounts also indicated that due to high security requirements there would be a fairly lengthy login procedure for individual taxpayers.
Last week, HMRC came in for criticism from the House of Lords economic affairs committee over its plans to communicate changes about the personal savings allowance and dividend payments through printed leaflets which will be left at banks and building societies for customers to pick up.
HMRC is taking a different position to its approach to the introduction of the new ‘S’ tax code for Scottish taxpayers with the April 2016 introduction of the Scottish Rate of Income Tax. For this rollout, last December HMRC wrote to all identified Scottish taxpayers alerting them to the fact that the tax system was changing for Scottish residents.
Although the long-term plan is to abolish self assessment, it will be some time before digital tax accounts are developed to the degree where self assessment is no longer required.
From 2017, savings interest paid by banks will be imported into digital tax accounts, for example, giving taxpayers a single view of tax liability; likewise, from this April, anyone creating a digital tax account will be able to view their PAYE liabilities.
To set up a digital tax account, go to HMRC
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