HMRC app: is it useful for the self-employed?

With over seven million users, the HMRC app is becoming a popular tax tool. But is the app useful for the self-employed? And can it help you with your Self Assessment tax return? 

Read on to find out what tax information is available on the app, and how you can use it to make your tax return simpler. 

What is the HMRC app?

The HMRC app allows you to manage your tax and benefits information in one place. The app is free and is an official product from HMRC that can be used as a tax tool for anyone that is registered with HMRC.

What can you do with the HMRC app?

But the HMRC app isn’t all about Self Assessment. You can do a number of tasks on the app like: 

• find your tax code and National Insurance number
• check your income and employment history from the past five years
• see your child benefit, tax credits, and state pension forecast
• find your unique taxpayer reference and income information
• use a tax calculator to estimate take-home pay, and check for National Insurance contribution gaps
• make payments for Self Assessment and set payment reminders 
• track forms and correspondence with HMRC
• update personal information 
• add your National Insurance number to a digital wallet and choose electronic communications from HMRC
• use HMRC’s 24-hour digital assistant for guidance and support

In the past, the only way to access the majority of the tax information listed above was through the HMRC website. Now you can check it all on the go from your smartphone. 

But you can’t do your core Self Assessment tasks in the app, this still needs to be done through the HMRC website. The app is mainly used as a quick and convenient way to access your tax details and pay tax bills. 

How do you use the HMRC app to make a Self Assessment payment?

Paying your Self Assessment tax bill through the HMRC app is quite straightforward:

1. if you haven’t already, download the HMRC app and log in using your Government Gateway code
   
2. view your tax bill in the Self Assessment section, where you can see the amount of tax you owe. Tap on ‘view breakdown’ to see a detailed breakdown of your bill
   
3. select the ‘pay now’ and choose your bank from the list
   
4. once the payment’s successful, you’ll receive confirmation within the HMRC app, along with a payment reference number

It’s all summarised here in a video from HMRC. 

It’s important to remember that it can take up to five working days for the payment to show in the app. 

Can you get a self-employed tax refund on the HMRC app?

You can’t get a refund in the HMRC if you’ve overpaid tax on your Self Assessment. It’s simple to get a tax refund on the app if you pay your tax through PAYE, but self-employed tax refunds are usually more complicated. 

Self-employed taxpayers claim refunds through the Self Assessment process. This means that any overpayments will be dealt with once HMRC has received your tax return.

Our guide to self-employed tax refunds goes into more detail. 

What are the benefits of the HMRC app for the self-employed?

The main benefit of the HMRC app for the self-employed is having all your tax information in one place. A centralised app where you can pay your tax bills securely, manage your personal information, and get support from HMRC could save you time. 

Being able to set reminders for payments and tax deadlines can help you stay organised and avoid fines for missed payments.  

And the virtual assistant is available 24 hours a day. For simple tax questions you can get support at any time directly to your phone. But be aware that for more complex questions, you may still need to get in touch with HMRC via the helpline or webchat.

Think of the HMRC app as a tool that’s similar to your accounting or invoice software – a bit of technology that can make the accounting process simpler. 

More useful articles for the self employed 

• How much is professional indemnity insurance?
• Best accounting software for your business 
• How much does an accountant cost?
• A complete guide to business tax