Taxpayers begin to receive simple assessment requests (PA302)

George Hay Chartered Accountants

Taxpayers throughout the UK will have begun to receive a simple assessment (form PA302) from HM Revenue & Customs (HMRC), which will request payment of tax that cannot be coded out under PAYE.

A simple assessment is a tax assessment made by HMRC, launched with the aim of removing taxpayers from the self-assessment regime where they have a small income or gains not taxed under PAYE. These taxpayers will have begun to receive a simple assessment from mid-August 2017.

However, if the taxpayer has received notice to file a self-assessment tax return, HMRC must retract that notice before issuing a simple assessment. HMRC has up to four years from the end of the tax year to issue a simple assessment.

This has led to concerns from some pensioners with income that only just exceeds their personal allowance. They remained within the scope of the self-assessment regime for 2016/17, but HMRC have said they will be removed and put into the simple assessment regime for 2017/18.

If a taxpayer receives a simple assessment (PA302 form) they have up to 60 days to query it or, in some instances, a longer period as dictated by HMRC.

It is essential that anyone who receives an assessment contacts HMRC within this period if they have any doubts or concerns, as after this period assessments become binding and the tax liability becomes payable.

Normal tax payment dates will still apply, but if the simple assessment is issued after 31 October following the tax year, the tax will be payable three months after the date of the assessment.

Tax Partner at George Hay, Phil Blackburn, commented: “A simple assessment should only be issued in the most straight-forward of cases, where HMRC have all the information that they need from 3rd parties to calculate the individuals tax liability.

“Simple assessments are not the same as a tax return as they are a tax assessment made by HMRC and not by the taxpayer. The assessment will only contain what HMRC knows; if you have other income which HMRC does not know about, this will not be considered. It is your responsibility to notify HMRC of any new source of income at the earliest opportunity.

“As a taxpayer, if you receive a simple assessment and believe it to be incorrect, you must query it within the 60 day period, otherwise your right to appeal is effectively lost. We can help you to determine whether the simple assessment is correct or not so, if in doubt, contact your usual adviser at the earliest opportunity.

“It is also worth noting that the requirements associated with a simple assessment do not fall under the MTD regime.”

Here at George Hay, whether self-assessment or simple assessment we can help you to fulfil your obligations. Contact us today on 01767 315010, to find out more.

LINK: Income Tax: simple assessment

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