Tax + Tax Planning: Simple Assessments

A Simple Assessment is a letter issued by HM Revenue & Customs, either by post or to your personal tax account if you have one. It includes a calculation of your income tax position based on the information which HM Revenue & Customs holds from third parties such as the Department of Work and Pensions, employers PAYE records, pension providers and banks and building societies.

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HMRC sends the majority of Simple Assessment tax statements between July and August after the end of the tax year, although Simple Assessments can be sent at any time as information becomes available.

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Simple Assessments can be issued by HM Revenue & Customs to taxpayers who have tax to pay, but where this cannot be collected under pay as you earn (PAYE) via a tax code and where the taxpayer is not required to complete a Self-Assessment Tax Return.

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Crucially you should check the calculation carefully against your tax records, including your P60 Certificates, bank and building society interest statements, letters from the Department of Work and Pensions etc. You should also check if any income has been omitted such as interest, dividend or chargeable event gains and if any claims for relief have been included in the calculations, such as higher rate relief for gift aid donations and personal pension contributions.

The interest included on the Simple Assessment will be provided as a single figure rather than broken down between the different accounts/ sources and HMRC may include estimated figures.

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You should contact HMRC within 60 days of the date of issue of the Simple Assessment.

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The Simple Assessment should provide details on how to make a payment. The deadline for making a payment for the tax year ended 5th April 2024 will be 31st January 2025 for assessments issued before 31st October 2024 and 3 months from the date of the letter where the assessment is issued after 31st October 2024.

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You should advise HMRC by 5th October following the end of the tax year if you have received any untaxed income on which you have tax to pay or any taxed income on which you believe you have an additional liability.

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If you have received a Simple Assessment and would like assistance in checking this or have any questions in that regard, then please contact our Trust and Tax Manager Samantha Hawkins.