HM Insights

Simple Assessment - The end of self-assessment for some …

HMRC are introducing a simpler way to self-assess from April 2018, but initially Simple Assessment will only apply to two groups of taxpayers:

  1. Pensioners whose only income is state pension the level of which exceeds their personal allowance; and
  2. Those that cannot have the tax they owe collected via their tax code;

How will it work?

If this applies to you, you will no longer need to complete a self-assessment tax return. Instead, HMRC will issue a tax calculation to you, using the information that they hold about you.

Simple Assessment Tax Bill Payment Option Credit Card Self Assessment Hmrc Lawyer Solicitor

What happens then?

Taxpayers falling into these groups will need to consider HMRC's figures and if they agree with the tax calculation, arrange to settle the tax owed by the following 31st January as normal. For those under Simple Assessment, there will be no de-minimis limit in force, so no matter how small the bill, the tax will need to be settled.
What if I do not agree?

Taxpayers will have 60 days to appeal the simple Assessment if they do not consider the figures to be accurate, and if they do not agree the amended calculation, they have 30 days to appeal again.

How do I pay?

No reminders or payslips will be issued to taxpayers to assist them in ensuring they both remember to settle their tax and remember the amount of tax due to be settled.
Payment options will also be restricted for those in this category, with only cheques sent by post, or electronic card payments via the Personal Tax Account accepted, and payments will need to be accompanied by the taxpayers reference.

Rather than use an existing reference such as a national insurance number or UTR, HMRC have advised that a new payment reference will be issued every year.

Get in touch

Please make sure you know how to pay, and if you are unsure contact us.