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Simple Assessment – are you eligible?

1st November, 2017

As part of HMRC’s plans to digitise the UK tax system and abolish the tax return, the Simple Assessment has recently been introduced. Nottingham chartered accountants, Clayton & Brewill explains more about the new system and who is currently eligible.

What is a Simple Assessment?Clayton & Brewill explains more about Simple Assessment

A Simple Assessment is a new way of collecting tax, without requiring the completion of a Self Assessment tax return. For those who have straightforward tax affairs, the Simple Assessment will make life much easier.

HMRC will use existing data to calculate the tax owed by those who are eligible for a Simple Assessment. They will then write to these individuals with a tax calculation, which they can double-check and pay online or by cheque by the required deadline.

Who is eligible for a Simple Assessment?

A Simple Assessment is for those who have the most straightforward tax affairs.

HMRC are rolling out the system using a phased approach. Since September 2017, the following two groups are no longer required to complete a Self Assessment tax return. Instead, they will have their tax calculated using a Simple Assessment:

  • New state pensioners with income more than their personal tax allowance in the year 2016-2017
  • PAYE customers who have underpaid tax that cannot be collected through their tax code

HMRC plans to roll out the system wider over the next few years and estimates that approximately two million individuals, with straightforward tax affairs, will benefit from the new system.

To find out more about the Simple Assessment and HMRC’s plans to digitise tax, visit their website.

If you’d like advice on Simple Assessment or require help with your tax return, please contact a member of our friendly team.

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