Are you affected by the new Simple Assessment process?

HMRC has now introduced Simple Assessment, a process designed to make the tax system easier. It eliminates the need for some people to file a Self-Assessment Return if the information is available to HMRC through the Digital Tax Account and 3rd party data.

This new system came into force in September, and currently applies to you if:

  • You are a PAYE taxpayer who has underpayments that cannot be collected through your tax code.
  • Your state pension is more than the personal tax allowance and the tax due cannot be collected through your tax code.
  • You have been taken out of Self-Assessment; in this case you will receive a Simple Assessment letter instead (called a PA302) which will explain the tax due and how to pay.

The date payment is due is still usually 31 January, and you can pay online through your Personal Tax Account or by sending a cheque.

If your circumstances have changed from the information in the letter, you must notify HMRC within 60 days with the amended figures and any evidence. If you’re not satisfied with HMRC’s response to that, you can appeal within 30 days.

The PA302s will be issued between May and October, replacing P800 calculations except where there is a refund or the underpayment can be collected under PAYE.

If you receive a PA302 or any documents you don’t recognise, please forward them to us or call us on 020 8530 0720 for advice.