Simple assessments

By Tolley

The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Simple assessments
  • Who might receive a simple assessment?
  • What is included in the simple assessment?
  • Objecting to the simple assessment
  • Right of appeal
  • Deadline for paying the tax due
  • Interaction with the requirement to notify chargeability
  • Real Time Transaction Tax Return

From 2016/17 onwards, HMRC has the power to make a ‘simple assessment’ of the taxpayer’s income tax and / or capital gains tax liability outside of the Self Assessment system.

FA 2016, s 167(2)

This has been introduced to support the Making Tax Digital agenda. As HMRC already receives significant amounts of information on the income received and tax paid by taxpayers via existing data-gathering channels, including the information provided by employers under real time information (RTI), it should make better use of this to make it easier for individuals with straightforward tax affairs to comply with their obligations.

Finance Bill 2016 explanatory notes  (FA version not available at the time of writing)

As was expected when simple assessments were introduced, HMRC announced  in September 2017 that it would begin moving the following groups out of the Self Assessment regime and will issue simple assessments instead:

Taxpayer circumstancesComment
State pensioners with income that exceeds the personal allowanceRemoval of these taxpayers from Self Assessment will be phased-in over a two-year period, with new state pensioners being moved across first.
According to the October 2017 HMRC Talking Points webinar on simple assessments, this applies to state pensioners where the state pension is their only source of income. In future years, those state pensioners with other income, such as savings income, may also be moved into simple assessments

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