Simple Assessment is a way to pay Income Tax that is not taken automatically from your income where you are not required to complete a self-assessment tax return. Instead, HMRC send the individual a calculation of tax owed for the tax year (PA302). An example of this may be if you owe tax from a previous year on your State Pension.
HMRC base the Simple Assessment on information that is provided to them via the Department for Work and Pensions (DWP) and other organisations such as PAYE. It is therefore important to check the figures on the Simple Assessment calculation carefully which is where Team SAS are able to help.
Key features
The Simple Assessment will calculate an individual’s tax liability based on their:
- Earnings under PAYE, state pension, employer pension.
- Benefits and expenses as reported by their employer.
- Savings interest.
(as reported directly to HMRC by their employer, pension provider, the state or the banks)
Who does Simple Assessment apply to?
Primarily, Simple Assessment is for taxpayers with only a state pension however it is also being used for other simple cases such as individuals who have more than once source of PAYE income or other regular income. However, it will not be used if you have income for more than one tax year to reconcile.
HMRC use Simple Assessment at their own discretion and it is not possible to register for this yourself.
How can we help?
If you receive a Simple Assessment from HMRC it is important to review the figures on the calculation carefully and appeal within 60 days of the Simple Assessment date if you disagree. Here at SAS we can assist with this review and appeal process as we understand that these numbers can be daunting and our expert tax knowledge will ensure that you are paying the correct amount of Income Tax.
If you have received a Simple Assessment from HMRC and require some advice, please contact us at info@sas-accountants.com or 0333 202 6441.
