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HMRC says that the arrangements offer taxpayers the opportunity to set up a payment plan to pay off their debt by instalments if they have been unable to pay off the tax due by the payment deadline. Please see If you cannot pay your tax bill on time.
Simple Assessment letters are sent to taxpayers who are not part of self-assessment, and for those who either do not have a PAYE tax code, or where HMRC cannot deduct the tax due automatically through that process. Simple Assessment letters, providing detailed calculations for any tax owed for income received between April 2024 and April 2025 are being sent to taxpayers over the next few months.
While some taxpayers may receive a Simple Assessment year-on-year, most will have no previous knowledge of what a Simple Assessment is, how it’s calculated or why they have underpaid tax. Advisers may therefore start to receive queries from clients who receive one of these letters.
The Simple Assessment letter details exactly what taxpayers need to do and includes information about:
how much tax is owed;
when it needs to be paid (usually by the following 31 January);
how to pay it, including what to do if they disagree with the assessment.
There are various ways for taxpayers to pay, including via the HMRC app. For further information, please also see Pay your Simple Assessment tax bill.
Taxpayers can watch the following video for further information and guidance: Simple Assessment — a step-by-step guide.
A common reason for a Simple Assessment is to pay tax on their State Pension. Taxpayers can use HMRC’s interactive tool check if you need to pay tax on your pension to see if this is likely to apply to them. And, in these circumstances taxpayers can also watch the following videos:
Taxpayers who owe tax from Bank, Building Society interest or both may receive two Simple Assessment letters in the same tax year.
When this happens, the second letter will include the total tax figure owed for the year — including the amount that was set out on the first letter — even if the taxpayer has paid that back to HMRC. If the taxpayer has already paid the first amount back, they will owe the amount set out in the second letter minus what they have already paid.
If a taxpayer receives a Simple Assessment, but they have already registered for self-assessment or filed their tax return for the year to which this assessment relates, they or their agent can call HMRC on 0300 200 3300 to have their Simple Assessment withdrawn.
Source: Techlink Professional
This is a news bulletin and is up-to-date as of the date of publishing. Please check the publishing date at the top of the article.
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Essential Wealth Management is a trading name of Essential Wealth Management and Advice Ltd which is an appointed representative of 2plan wealth management Ltd which is authorised and regulated by the Financial Conduct Authority. Essential Wealth Management and Advice Ltd is entered on the FCA register (www.FCA.org.uk) under no. 518528. Registered office: 1-2 Great Farm Barns, West Woodhay,Newbury, Berkshire RG20 0BP. Registered in England and Wales Number: 04020006.
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Approved by 2plan wealth management Ltd on 20/05/2025
