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When Was Simple Assessment Tax Introduced?

The Simple Assessment replaced Self-Assessment Tax Returns in September 2017; the Simple Assessment process of collecting tax was designed to make tax returns easier for millions of people.

Around 11 million fill out a self-assessment tax return every year, HMRC fine-tuned the process to make it easier and less time consuming in September 2017. HMRC now use existing data to fill out a tax return on some peoples behalf. If your tax affairs are a little more complicated, HMRC will get in touch to request additional information. The new system was titled ‘Simple Assessment’.

Who does this apply to?

Originally when the new policy was issued in September 2017 by the government, if you were part of one of the groups below, you would have been able to take advantage of the Simple Assessment tax process if:

1)You were a new state pensioner whose income was above the personal tax allowance in tax year 2016/17.

2)You were a PAYE customer who underpaid tax and cannot have that tax collected through your tax code.

At present, you will know if you are eligible for the Simple Assessment as you will receive a letter from HMRC!

Simple Assessment tax is calculated by the government using information provided by the Departments of Work and Pensions, as well as other organisations. HMRC will write to customers with a tax calculation via a Simple Assessment Letter (PA302).On receiving a Simple Assessment Tax payment request, it is very important to check the values and figures. If you find discrepancies within the tax return request issued to you, then you must appeal within 60 days, otherwise you will be unable to dispute the value.

How Do I Pay the Simple Assessment Tax Value?

If you are confident that the value calculated and issued to you is correct, you can pay the amount using your Personal Tax Account or you can send a check to HMRC, Direct BX5 5BD. You should put your Self Assessment Tax reference number on the back of the check. Make sure this is posted with enough time for the payment to not be late. Usually, the deadline for payment is the tax year deadline (31st of Jan) or 3 months following the issue of the Self Assessment Tax.

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.

If you need any help surrounding Simple Assessment, our self assessment tax accountants can help you.

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