What Is a Simple Assessment?

Receiving a tax calculation from HMRC can sometimes be confusing, particularly if you have not submitted a Self Assessment tax return. Simple Assessment is a system HMRC can use to calculate Income Tax that you owe when it already has enough information to work out your tax position.

Instead of asking you to complete a full tax return, HMRC calculates the amount due and sends you a Simple Assessment tax bill.

What Is a Simple Assessment?

A Simple Assessment is an HMRC calculation of Income Tax due. HMRC uses information it already holds about your income, tax paid and allowances to determine whether additional tax needs to be paid.

Your assessment should show your taxable income, allowances, tax already paid and the remaining amount due.

Why Does HMRC Issue a Simple Assessment?

HMRC may use Simple Assessment when it believes you owe tax but does not require you to complete a full Self Assessment tax return.

This can happen where HMRC already receives sufficient information about your income through sources such as PAYE and pension records.

Who Might Receive a Simple Assessment?

You may receive a Simple Assessment if HMRC has calculated that additional Income Tax is due and it cannot conveniently collect the amount through your PAYE tax code.

It can particularly affect people receiving pension income, including the State Pension, because State Pension payments are generally made without Income Tax being deducted directly.

How Does HMRC Calculate the Tax?

HMRC uses information available on its records to calculate your tax position. Depending on your circumstances, this could include:

It is important to check the assessment carefully because HMRC’s calculation is based on the information it holds.

Simple Assessment vs Self Assessment

The key difference is who provides and calculates the information.

With Self Assessment, you normally report your income, expenses and other relevant information to HMRC through a tax return.

With Simple Assessment, HMRC already holds enough information to calculate your tax liability and sends you the calculation without requiring a Self Assessment return for that liability.

How to Check Your Simple Assessment

When you receive an HMRC Simple Assessment, check that:

If any information is incorrect, you should contact HMRC rather than simply paying an incorrect amount.

When Do You Need to Pay?

Your Simple Assessment notice will state the amount due and the payment deadline.

Make sure payment is made by the date shown on your assessment. Paying late can result in interest and other consequences, so it is important not to ignore an HMRC tax bill.

What If Your Simple Assessment Is Wrong?

If you believe HMRC has used incorrect information, you can contact HMRC and challenge the assessment.

For example, the income figure may be incorrect, tax already deducted may be missing, or HMRC may not have taken account of information relevant to your tax position.

Taking action quickly can help prevent an incorrect tax liability from remaining on your HMRC account.

How Legacy Accounting Can Help

At Legacy Accounting, we can review your Simple Assessment, check the income and tax figures used by HMRC and help identify any discrepancies.

We can also help you understand whether you have any separate Self Assessment obligations and provide support with your wider personal tax affairs.

Professional support can make dealing with HMRC simpler and help ensure you pay the right amount of tax at the right time.

Simple Assessment FAQs

Is Simple Assessment the same as Self Assessment?

No. With Simple Assessment, HMRC calculates the tax based on information it already holds. Self Assessment generally requires you to report relevant income and other information through a tax return.

Why have I received a Simple Assessment?

HMRC may send one if it calculates that you owe Income Tax and it already has enough information to determine the amount without requiring a full Self Assessment return for that liability.

Do I need to pay a Simple Assessment?

If the assessment is correct, you should pay the amount due by the deadline shown on the notice. If you believe it is incorrect, contact HMRC promptly.

Can I challenge a Simple Assessment?

Yes. If you believe HMRC’s calculation or the information used is incorrect, you can challenge the assessment within the applicable time limits.

Can Legacy Accounting help with a Simple Assessment?

Yes. Legacy Accounting can review your HMRC calculation, help identify errors and advise you on the appropriate next steps.

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