Simple Assessment: Marking the end of the Tax Return for millions
2 months ago
The Simple Assessment replaced Self-Assessment Tax Returns in September; this new process of collecting tax is expected to make it easier for millions of people who have had to submit a tax return in the past.
Around 11 million fill out a self-assessment tax return every year, HMRC have fine-tuned the process to make it easier and less time consuming as of last month, September 2017.
HMRC will now use existing data to fill out a tax return on your behalf. If your tax affairs are a little more complicated, HMRC will get in touch to request additional information.
The new system has been titled ‘Simple Assessment’.
Who does this apply to?
If you’re part of one of the groups below, you will be able to take advantage of the Simple Assessment.
1) If you’re a new state pensioner whose income was above the personal tax allowance in tax year 2016/17.
2) If you’re a PAYE customer who underpaid tax and cannot have that tax collected through your tax code.
HMRC states, “All existing state pensioners, who receive state pension over their personal allowance, who have received a notice to file a Self-Assessment for the tax year 2016 to 2017 should complete their return as usual.
“They will be taken out of Self-Assessment for the next tax year, 2017 to 2018, and will receive a Simple Assessment notification instead.”
HMRC are currently in the process of writing to customers with a tax calculation, either in the form of a P800 or a Simple Assessment Letter (PA302).
If you think that the information is incorrect, you will have 60 days to get in touch with HMRC.
“Should customers miss the deadline they should contact HMRC to discuss their circumstances or financial penalties will be applied in line with current policy.
“If customers are not happy with the follow-up response from HMRC, they have 30 days to appeal against the decision.”
Gorilla Accounting is a specialist accountancy firm, exclusively for Contractors and Freelancers operating through a Limited Company or Umbrella Solution. If you would like more information, get in touch with our New Business Team by calling 0330 024 0406 or email firstname.lastname@example.org.