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04th December 2017

HMRC Introduces Simple Assessment

As part of making tax digital, HMRC has introduced Simple Assessment.  This will replace the need for many individuals with simple tax affairs to complete a Self Assessment Tax Return.

What does this mean for me?

As HMRC now receives income data from third parties such as banks and pension providers there should be fewer people who actually need to prepare a Tax Return.

Instead of receiving a request to complete a Tax Return, tax payers will receive a Simple Assessment letter.  This should include all the information HMRC has already received about their income, tax deducted at source and any benefits in kind you may have received (via P11D).

If you receive a Simple Assessment letter you must check that it includes all the income, capital gains, allowances and reliefs during the period to which it relates and that they are correct.  If there is an error or omission you have 60 days to contact HMRC to raise a query.  If you are unhappy with HMRC’s reply to your query you have 30 days from their reply to appeal.

Initially HMRC are only introducing Simple Assessment to:-

- New pensioners who started to receive a state pension in 2016/17 and whose affairs are straightforward; and

- People taxed under PAYE who have underpaid in 2016/17 who cannot have that tax collected through their tax code.

Any tax due under Simple Assessment for 2016/17 will be payable by 31 January 2018 or if the Simple Assessment is dated 31 October 2018 or later then 3 months after the notice is given.  There is no payslip for payments.

If you would like further advice or information on how this may affect you, please contact Elaine Morgan on 01604 463120 or click here to email.