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24/08/2023

Checking your Simple Assessment tax bill

by David Edmonds

Simple Assessment is a method by which HMRC can assess where additional Income Tax is due by a taxpayer. A Simple Assessment letter is usually issued to taxpayers with reasonable straight forward tax affairs. The Simple Assessment notice of liability does not require taxpayers to submit a Self-Assessment tax return.

The Simple Assessment process was first announced by HMRC back in 2016. However, the rollout has been paused a number of times. The process can be used in various situations, for example, where it is not possible to collect the whole of a person’s annual Income Tax liability through PAYE, if HMRC is owed £3,000 or more and if there is tax to be paid on the State Pension.

Recipients of a Simple Assessment tax bill should check that the amounts shown in the letter match your records, for example, your P60, bank statements or letters from the Department for Work and Pensions (DWP).

If the amounts are correct, you will need to pay your Simple Assessment tax bill. 

You must pay by either:

  • 31 January – for any tax you owe from the previous tax year; or
  • within 3 months of the issue date if you received your letter after 31 October.

The tax year runs from 6 April to 5 April. In some cases, HMRC will allow the payments to be made in instalments.

A taxpayer who does not agree with the Simple Assessment has 60 days from the date it was issued to contact HMRC, setting out the reasons for their objections. If no objections are raised within 60 days, the Simple Assessment is automatically finalised.

Source:HM Revenue & Customs| 21-08-2023

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