HMRC has released new details about its Simple Assessment system for those who have to complete a tax return.
Simple Assessment is a new way of collecting tax. Currently, around 11 million people have to complete a tax return. However, with greater use of existing data, HMRC can now find the information for some of those customers elsewhere, without needing them to complete a tax return.
As of September 2017 HMRC will remove the need for some customers to complete a tax return, starting with two groups:
new state pensioners with income more than the personal tax allowance in the tax year 2016 to 2017 Pay As You Earn customers, who have underpaid tax and who cannot have that tax collected through their tax code.HMRC will write to those who fall under either of these two categories with a tax calculation. This could be a P800 or a Simple Assessment letter (PA302).
The letter will show their income from pay, pensions, state benefits, savings interest and employee benefits.
HMRC’s customers will need to check the information is correct, and if it is they can pay their bill online or by cheque by the deadline in the letter.
If a customer thinks any information is incorrect they have 60 days to contact HMRC.
