HMRC have introduced Simple Assessments which will replace the requirement to complete a Self Assessment tax return for some individuals. These new assessments are aimed at reducing the number of individuals with simple tax affairs who are currently required to submit a tax return but where advances in technology mean that HMRC already have the information needed.
For the 2016/17 tax year Simple Assessments may be issued to those in receipt of pension income where the tax due cannot be collected through their coding notice (i.e. where the tax can’t be collected by making deductions directly from the pension payments). HMRC are also able withdraw a notice to submit a 2016/17 tax return and replace it with a Simple Assessment.
If you receive a Simple Assessment form (PA302) from HMRC you have 60 days to check the information and raise any queries with HMRC. At the end of the 60 day period the assessment becomes binding.
Any tax due is payable by the latter of the 31 January following the end of the tax year to which it relates or 3 months following receipt of the assessment. The assessment notice should include information about how to pay the tax.
HMRC intend to start sending out Simple Assessments in September and October. It is important that if you receive one it is not overlooked. The information should be checked to ensure that it is accurate. It is also important to ensure that all sources of taxable income are included and that any reliefs for losses, gift aid, pension contributions etc. have been correctly applied.