Do You Fall Into Simple Assessment?

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Do You Fall Into Simple Assessment?

By Stacey McVeighty | Tuesday, 20th February 2018

HMRC Roll Out Simple Assessment

HMRC are gradually phasing out the self-assessment tax return and replacing it with an individual tax account pre-populated with data supplied by employers, pension companies and State Pension figures from DWP.  This new system is called Simple Assessment (Yes, we laughed at HMRC using the word “Simple” in a sentence too).

With effect from April 2017, HMRC will have the power to assess income tax or CGT liabilities using information they already hold. This new system will initially apply to two groups:

Firstly, new state pensioners with income more than the personal tax allowance in the tax year 2016/17.

Secondly, PAYE customers, who have underpaid tax and who cannot have that tax collected through their tax code.

"Yes, we laughed at HMRC using the word “Simple” in a sentence too"

What to Expect from HMRC if you are a Simple Assessment Individual

HMRC will either send a P800 or a PA302 (Simple Assessment letter) listing the information they hold about the individual.

Taxpayers will have 60 days in which to challenge incorrect information in a Simple Assessment. If they miss the deadline then they should contact HMRC, but penalties will be applied.

You can access your Personal Account with HMRC via the Gov website

From our experience with HMRC, we naturally have concerns about the accuracy of this data so please contact us if you drop out of self-assessment and would like us to check the HMRC figures in future.