Understanding HMRC’s Simple Assessment Tax Bill Process

Introduced by HMRC in 2016, the Simple Assessment method offers a streamlined process for assessing additional Income Tax for those with uncomplicated tax situations. Primarily intended for taxpayers whose tax commitments cannot be addressed entirely through the PAYE system or those owing £3,000 or more, this method simplifies the procedure for those with straightforward tax liabilities, such as a tax on State Pension.

What Do You Need To Know?

1. No Need for Self-Assessment: The beauty of the Simple Assessment is that it eliminates the need for taxpayers to submit a Self-Assessment tax return if they fit the criteria.
2. Check Your Records: Upon receipt of the Simple Assessment tax bill, it’s crucial to cross-check the stated amounts with your records. Documents like P60s, bank statements, or DWP letters can help in this verification process.
3. Payment Deadlines: Taxpayers should ensure they meet the required payment deadlines:
   • By 31 January for taxes due from the preceding tax year.
   • Within 3 months from the issue date, the letter is received post-31 October. Remember, the tax year spans from 6 April to 5 April. Depending on circumstances, HMRC might offer flexibility in the form of instalment payments.
4. Disagreements with the Assessment: If you find discrepancies or disagree with the Simple Assessment, it’s imperative to reach out to HMRC within a 60-day window from the date of issuance. Failing to raise concerns within this period means the Simple Assessment gets finalised by default.