Simple Assessment replaces Self Assessment.


Around 11 million people must submit their individual Self Assessment every year. Nowadays, the HMRC’S technical infrastructure allows for some of these people’s details to be collected even without submitting their assessment.

As a result, not everyone needs to submit a tax return. This is known as Simple Assessment and the following article will present its main characteristics in an attempt to clarify it further.

What it means for the tax payers.

Since September 2017, the following two categories of tax payers do not need to submit a Self Assessment tax return:

CATEGORY A: New state pensioners whose state pension is more than the personal tax allowance in the tax year 2016 to 2017, and the tax due can’t be collected through their tax code.

CATEGOORY B: PAYE customers (taxpayers) who have underpaid tax and who cannot have that tax collected through their tax code

How it works in practice.

To put it simply, based on income details, the HMRC will be performing the self assessment and will be sending the relevant assessment to each tax payer through P800 or a PA302 (the “Simple Assessment letter”). All the taxpayers will then have to simply confirm by paying online.

HMRC will write to relevant customers a tax calculation letter and this letter will show their:

- Income from pay

- Pension

- State benefits

- Savings interest

- Employee benefits

In case the taxpayer has any objections to the above calculated information, they will have to contact the HMRC within 60 days to resolve the issue. If they continue to have objections (even after contacting HMRC), they will then have 30 further days to appeal on decision.

The new regulation applies since the date of the Royal Assent for Financial Act 2016 (15th September) and can be used from tax year 2016/17 onward.

For further information, please visit GOV.UK or speak to your accountant.

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Translated / Edited by, Apostolia Nestoratou.

© 2018 UPECO LTD

Attention! This article intends to give only a general informative picture and should not, in any case, be taken as a rule. It is strongly recommended to seek a full and professional guidance specifically for your circumstances before making any decisions.

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