HMRC simple assessments: what you need to know

As the first HMRC simple assessments are sent out, Meg Wilson CTA explains how they work for affected taxpayers including new pensioners and anyone who has underpaid PAYE and what action they need to take as they are pulled into the first wave of implementation, effectively seeing the abolition of their annual tax return

Between September and Christmas HMRC plans to issue 400,000 simple assessments letters (or PA302s). The assessments will be based on third party information already held by HMRC. Their use aims to prevent individuals with the simplest tax affairs from having to complete self assessment tax returns.

The principle of taking such people out of the self assessment tax regime has been roundly welcomed. However, there is a worry that many of the assessments will be wrong and taxpayers may overlook their obligation to check the assessments.

This article explains what simple assessments are, the background to their introduction and the action recipients of such assessments should take.

Your free features:

Breaking news and expert analysis
Customisable daily newsletters
Six free CPD learning modules each year
Personalised CPD tracker
Top 75 Firms league tables
Regulatory changes
Hardman’s Tax Data

Tax | Monthly ‘payday’ tax bills for 7m self assessment PAYE taxpayers

Tax | HMRC clarifies MTD exemption rules and year one waiver

Tax | What you need to know: MTD for Income Tax complexities

Tax | 40% taxpayers need to actively claim pension tax relief

Tax | Do I need to file a self assessment tax return?

Navigate

Tax Services

Your free features:

Sign up to Business & Accountancy Daily