Normally, even if the state pension is an individual’s only taxable income they must complete a self assessment tax return if the total amount of pension received in a tax year is more than their tax-free personal allowance. However, for 2016/17 HMRC has changed this and will send their own calculation of the tax owed for the 2016/17 tax year through a simple assessment.

The simple assessment will be based on the details of an individual’s state pension that HMRC receives from the Department for Work and Pensions (DWP).

Any tax owed for 2016/17 on the simple assessment will be due for payment by 31 January 2018, the same date as a tax return, or three months after the date of the simple assessment if that is later.

If an individual started to receive their state pension before 6 April 2016, and it exceeds the personal allowance of £11,000 for the 2016/17 tax year, they must continue to file a self assessment tax return for 2016/17.

HMRC had originally intended that all taxpayers who completed a tax return just because their state pension was more than their tax free allowance would receive a simple assessment calculation for the 2016/17 tax year. However, HMRC’s testing of this new process overran and so now it will only be those who began to receive their state pension after 6 April 2016 who will be sent the simple assessment.

If an individual believes that the figures in the simple assessment are incorrect then they have an initial appeal period of 60 days from the date of the simple assessment to query them with HMRC.