Posted on: 1st September 2017

Simple Assessment

The introduction of Simple Assessment means that HMRC will remove the need for certain taxpayers to complete a tax return. HMRC began the roll-out of Simple Assessment in September 2017 to two groups:

  • New state pensioners with income more than the Personal Allowance in 2016/17; and
  • PAYE taxpayers who have unpaid tax which cannot be collected through their tax code.

Whilst you may not fall into either of these groups, Simple Assessment is a sign of things to come. HMRC no longer needs those with more straight forward tax affairs to inform them of what should be included on their tax return. HMRC is now able to access data already held about the taxpayer in order to calculate tax liabilities.

Our article about HMRC’s “Connect” software, which can access data held by third party organisations about taxpayers, gives an insight into the in which HMRC is tackling tax avoidance.

It should be noted, however, that Simple Assessment doesn’t mean that if you have a new source of income that HMRC is not yet aware of, that you are absolved of all responsibility to report this income. You can’t just wait until HMRC detects undeclared income. It is still the taxpayer’s responsibility to ensure that the correct amount of tax is paid to HMRC. It is simply the case that Simple Assessment will reduce the requirement for those with more straightforward tax affairs to complete a tax return. Please see the link to HMRC’s website for more information about Simple Assessment: