Simple Assessment

5th October 2017

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In a move intended to reduce the number of taxpayers who are caught up in the annual Self Assessment process, HMRC have now started issuing ‘Simple Assessments‘.  Unlike a Self Assessment which is a tax assessment submitted by the Taxpayer, a Simple Assessment is a tax assessment issued by HMRC.  We understand it will take the form of a letter setting out the taxpayer’s known income sources and taxpayers who receive the letters simply need to ensure that the detail shown is correct.

What this means

Starting September 2017 HMRC will remove the following from Self Assessment:

What if I currently complete a Self Assessment Tax Return?

All existing state pensioners, who receive state pension over their personal allowance, who have received a notice to file a Self Assessment for the tax year 2016 to 2017 should complete their return as usual. They will be taken out of Self Assessment for the next tax year, 2017 to 2018, and will receive a Simple Assessment notification instead.

What do I need to do if I receive a Simple Assessment?

If you receive a Simple Assessment we’d strongly advise you to check the information shown carefully.  If you agree the contents then you should proceed to pay the tax arising online or by cheque by the deadline in the letter.

What if I think the information is incorrect?

If you think the information contained in the Simple Assessment is incorrect then you only have 60 days to contact HMRC.  Should you miss the deadline you need to contact HMRC as soon as possible to discuss the position.  Once a Simple Assessment has been received and accepted the tax assessment is binding. For this reason it is very important that the information is checked and any follow up with HMRC actioned within the 60 day window.

If after HMRC have considered the position further and you still consider that the psition is incorrect then you have a further 30 days to appeal against the decision.

If you’ve received a Simple Assessment but are unsure if the information is correct feel free to get in touch with our tax team and we’ll be happy to assist.