Simple assessment is here

Oct 09, 2017

Due to the overwhelming response to last week’s Talking Points meeting on Simple Assessment, HMRC have set up another Talking Points meeting on the subject on 19 October. As Simple Assessments start to land on taxpayer’s doormats, make sure you’re prepared for any questions they may have so take the time to register now for this session.

Currently, around 11 million people have to complete a tax return every year to provide HMRC with information about their income. With use of existing data HMRC can now find the information for some of those taxpayers elsewhere without needing them to complete a tax return. This new system is called Simple Assessment and is expected to take up to 2 million people out of self-assessment in 2016-2017.

What it means for taxpayers

From last month, HMRC will begin to use simple assessment starting with two groups:

  • new state pensioners with income more than the personal tax allowance in the tax year 2016-2017; and
  • PAYE taxpayers who have underpaid tax and who cannot have that tax collected through their tax code

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