The summer job market is in full swing, but a worrying gap in knowledge among young people has been exposed – 40% of Generation Z wish they had acquired fundamental tax awareness earlier in life. As HM Revenue and Customs (HMRC) ramps up promotion of its mobile app to help smooth the transition into seasonal work, it's clear that many Gen Z jobseekers are uncertain about how to manage their taxes.
Last year, a staggering 3.4 million 18-24-year-olds were employed during the summer months, and HMRC is keen to ensure they're equipped with the necessary tools for success. The HMRC app provides instant access to essential job-related information, including National Insurance numbers, tax codes, employment history, and Pay As You Earn (PAYE) details – a vital resource that helps users avoid costly mistakes and get their finances in order.
Myrtle Lloyd, HMRC's Chief Customer Officer, stresses the benefits of the app: 'We're giving young people a head start on understanding their tax obligations and demystifying financial matters.' With 90% of young users praising its user-friendliness, it's clear that the app is meeting its promise.
More than 627,000 individuals aged 16-25 tried the app for the first time in the last financial year alone – a testament to its growing popularity among Gen Z. Since its launch in 2023, over 1.2 million people have securely saved their National Insurance number to their digital wallet via the app. HMRC's own survey reveals that one-third of young users accessed job-related information through the app, while nearly a quarter used it to save their National Insurance details and one-fifth relied on it when starting or changing jobs.
But HMRC isn't stopping at just the app – its 'Tax Confident' website offers clear and simple resources for understanding basic financial concepts, including income tax. And with many young workers concerned about pay packets that don't quite add up, HMRC is also reminding them to regularly check their wages against National Minimum Wage requirements – any discrepancies can be reported to HMRC or ACAS.