What Is a Simple Assessment?


A taxpayer may receive what is known as a simple assessment which is a calculation form number PA302. This is still a paper based system but is actually part of the government’s Making Tax Digital Programme.


The aim of simple assessment is for HMRC to use information which it already holds to produce an income tax calculation for a taxpayer who can either be an individual or a trust. This means that a self-assessment tax return is not then required.


The information HMRC holds tends to relate to employment details and pensions which it maintains through the submission of Real Time Information. Other government departments provide HMRC with information in relation to details such as the state pension and payments of other benefits. Most bank and building societies also report interest income details to HMRC.

Non-Qualifying People:

The individuals who will not be under this system will be those with rental income, dividends or who are self-employed.

Action Required:

If you do receive a simple assessment from HMRC, please check the figures carefully including HMRC’s calculation of the tax due. Please also check that if applicable, your pension and other tax reliefs have been included in this calculation.

If you do not agree with the calculation, then a taxpayer has 60 days in which to contact HMRC and arrange for a review. If there is a query in relation to the tax showing as due, then this amount can be postponed pending a review by HMRC. Once HMRC have given their final position, the taxpayer then has 30 days in which to appeal against this decision.

So maybe not so simple! If you need any assistance with your simple assessment, please contact my office.

If you would like our help to understand the implications in more detail for your specific situation, call us today on 02394 003600 or contact me on vicky@babcocktaxservices.co.uk.

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Posted in Tax & Accountancy.

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