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Teething problems for HMRC’s simple assessment for tax

Stephanie Court, tax director at RSM, warns there is a risk that HMRC is trying to move too far, too fast on digital transformation, by removing more people from self assessment without always having the correct data to calculate tax liability

After some delay, HMRC has now issued Simple Assessments to many taxpayers relating to underpaid tax for 2023/24. This is a method used by HMRC to collect income tax from individuals who do not file a tax return.

Normally issued between July and November following the end of the tax year, HMRC confirmed in December that this process could take until the end of March 2025 due to the sheer volume of information HMRC received.

In addition, HMRC has also acknowledged that it was unable to match around 20% of bank accounts to taxpayer records, meaning a significant proportion of tax assessments issued may not be completely accurate.

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