Virtual image of a maze, with hand drawing a yellow arrow straight through the middle as the simplest route
It’s Simple Assessment Season

The number of Simple Assessments issued by HMRC has significantly increased in recent years. To help taxpayers understand what receiving a Simple Assessment might mean for them, the ATT has produced a short YouTube video. As an employer, you might want to share it with your employees so they know what to do if they receive a Simple Assessment.

Who might receive a Simple Assessment?

An employee might receive a Simple Assessment if they have tax to pay:

  • which it is not possible to collect by restricting their PAYE code, or
  • on savings interest between £1,000 and £10,000.

HMRC provide guidance on when an individual might have tax to pay on their savings income.

When are Simple Assessments issued?

In previous years, HMRC has aimed to get all Simple Assessments issued between July and November after the end of the tax year. However, HMRC has recently updated their guidance on savings interest to say that Simple Assessments will now be issued from July to March following the end of the tax year.

What to do if you receive a Simple Assessment?

When an individual receives a Simple Assessment, they should check that HMRC’s figures are right as HMRC does not always hold all of the information needed to calculate an employee’s tax accurately.

For example, HMRC may not always have full details of savings interest. Sometimes HMRC uses estimated figures for interest or employment benefits. HMRC will also not know about any job related expenses the employee has incurred, any dividend income they might have received, or about any capital gains on sales of assets.

If anything is missing or estimated, it’s the employee’s responsibility to let HMRC know using the contact details on the letter. They will need to contact HMRC themselves unless they have an agent acting on their behalf.

 

This article reflects the position at the date of publication shown above. If you are reading this at a later date you are advised to check that that position has not changed in the time since.  

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