A positive HMRC Self-Assessment evolution

For many self-employed property agents, self-assessment is how they declare their tax liabilities. However, self-assessment has only been in place since 1996 and was created to streamline the tax collection process for those with untaxed income who declare and pay tax on it. With the move to an online service, HMRC went from zero to 97% of Self-assessment filers submitting their tax returns online.

Online ourchase using credit card and laptop

Each year, HMRC faces the same challenge – how to get millions of people to file their tax returns and pay any tax owed by 31 January. The answer was to create an online system that allows people to self-serve to meet their tax obligations.

The Self-assessment population is rising, with more than 12 million people expected to file a return. Approximately 6 million leave it until January to file their returns, which can cause delays.

HM Revenue and Customs HMRC sign
26 Feb 2024
HMRC remind agents to keep email contacts updated

Digital tax returns

The online service was launched in 2000 and, not daunted by the prospect of the ‘millennium bug’, 38,000 people submitted their Self Assessment tax return online. Those digital revolutionaries helped set the precedent that now sees more than 11 million people using the service, with 68,000 completing their 2023-24 return digitally on 6 April 2024, the first day of the new tax year.

HMRC states their online platform continues to evolve so that users can easily navigate the service, get their taxes right the first time, and find support when they need it. Agents can set up a Government Gateway account, register for Self Assessment, complete and submit the Self Assessment forms, and set up a payment plan to pay any tax owed.

HMRC offers a wide range of resources on GOV.UK and YouTube. One of the most popular is the Self Assessment Checker tool which helps individuals decide each year if they need to complete a tax return.

Asian Man with beard on laptop
24 Apr 2024
Agents can help test online income tax service ahead of rollout

Helping customers to self-serve

An improved online appeal process for Self-assessment launched in February 2024 enables customers to appeal against late filing or late payment penalties. There is also an HMRC digital assistant used 727,000 times in the 2024 Self Assessment peak, a 94% increase compared to the previous year.

Millions of people use the HMRC app to manage and interact with HMRC to meet their tax obligations. It was downloaded 3.6 million times in 2023-24 and the HMRC app allows customers to:

  • set reminders so they don’t forget to pay their tax bill
  • access the digital assistant through the app
  • find their Unique Taxpayer Reference
  • claim a refund if they have paid too much tax
  • pay their tax bill using the app

Last year, there was a 173% increase in customers choosing to pay through the app, which is complemented by specialist services which offer extra help for customers who need it. HMRC states they are committed to continuous improvement to make sure they can support customers and help them get their taxes right.