What are HMRC Simple Assessments?

In a bid to reduce the number of taxpayers forced to complete a Self Assessment tax return, HMRC has introduced Simple Assessments, but there are potential pitfalls, particularly for those outside PAYE and pensioners who are liable for tax, says Graham Boar, tax director at UHY Hacker Young

Back in 2015, the Treasury announced a desire to abolish the tax return and last year it took a step toward that aim, introducing legislation for a new form of tax collection – Simple Assessments.

The plan is to eventually remove two million taxpayers from the Self Assessment system and the first tranche of taxpayers being targeted are those where the PAYE system alone cannot deal with the tax liability, but where HMRC has sufficient information to determine the tax position and issue a demand for payment.

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