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Taxpayers begin to receive simple assessment requests (PA302)
15 September 2017

Taxpayers across the UK will have begun to receive a simple assessment (form PA302) from HM Revenue & Customs (HMRC), which will ask for payment of tax that cannot be coded out under PAYE.

A simple assessment is a tax assessment made by HMRC, which was launched with the aim of taking taxpayers out of the self-assessment regime where they have a small amount of income or gains which is not taxed under PAYE. These taxpayers will have begun to receive a simple assessment from mid-August 2017.

However, if the taxpayer has received notice to file a self-assessment tax return, HMRC must withdraw that notice before issuing a simple assessment to the taxpayer. HMRC has up to four years from the end of the tax year to issue a simple assessment.

This has led to concerns from some pensioners with income that just exceeds their personal allowance. They remained under the self-assessment regime for 2016/17, but HMRC have said they will be taken out of self-assessment and put into the simple assessment regime for 2017/18.

If a taxpayer receives a simple assessment (PA302 form) they have up to 60 days to query it or such longer period as HMRC allows.

It is vitally important that anyone who receives an assessment contacts HMRC within this period if they have concerns, as after this date assessments become binding and the tax liability becomes payable.

Normal tax payment dates will still apply, but if the simple assessment is issued after 31 October following the tax year, the tax will be payable three months after the date of the assessment.

LINK: Income Tax: simple assessment

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