From June 2025 HMRC will start issuing Simple Assessment letters to those affected. But what is it?
What is Simple Assessment?
Where possible, HMRC will adjust a persons’ tax code to recover additional tax on income which has not been taxed at source – for example where someone has received interest from non-ISA bank accounts in excess of their savings allowance. However when someone is not being paid under PAYE then adjusting their tax code is not an option. To save them the hassle of registering for Self-Assessment and submitting an annual tax return, HMRC introduced Simple Assessment for when a person:
- Does not have a PAYE tax code, or
- HMRC is unable to collect the tax owed through PAYE – for example they are not paid enough through PAYE to enable the additional tax to be collected.
What will the Simple Assessment letter contain?
The letters issued from HMRC will contain details of the total tax owed, the deadline for payment – which is usually the 31 January following the tax year – and details on how to pay.
Who is likely to be affected?
Those likely to be affected will be those in receipt of state pension (which is never taxed at source), and/or those receiving bank interest from non-ISA accounts in excess of their savings allowance. It is important to note that each Simple Assessment letter will only tackle one element, so for example if someone is due to pay tax on their state pension and interest on their savings interest, they will receive a separate letter for each.
What if I am already reporting under Self-Assessment?
Those already reporting under Self-Assessment will be declaring the paying the tax due under this system and so should contact HMRC to cancel the Simple Assessments raised.
How do I make payment under Simple Assessment?
Customers are able to pay any tax due under Simple Assessment either through the HMRC app, or by following the payment details on the .Gov site listed below:
https://www.gov.uk/simple-assessment/pay-online
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