Under Simple Assessment, HMRC automatically calculate tax liabilites using a Simple Assessment Calculation 'SAC' for some taxpayers. This removes them from self assessment system. The process will start by focusing on new state pensioners and PAYE customers.

Under the new Simple Assessment process HMRC are going to use the information they received from other sources to reduce the number of individuals that must submit a Tax Return:

  • New state pensioners with income exceeding the personal allowance will be removed from Self-Assessment from September 2017.
  • PAYE taxpayers who have underpaid tax which cannot be collected through their tax code will also be removed from Self-Assessment.
  • All state pensioners who complete a tax return because their state pension is more than their personal allowance will be removed from Self-Assessment in 2018/19.

HMRC will use the information they already hold and calculate any tax payable:

  • HMRC will begin writing to taxpayers this month with a tax calculation (a P800 or a PA302) instead of requesting a tax return.
  • Taxpayers must check the information is correct and pay the tax by the deadline specified. Payment can be made through the personal tax account.
  • A taxpayer will have 60 days to contact HMRC if they believe some of the information is incorrect 
  • If HMRC fails to correct the information, the taxpayer has 30 days to make an appeal.

Simple Assessment will currently be used only in the simplest of cases, but will be rolled out to more complicated cases alongside the planned improvements to the personal tax account.


Simple Assessment

Making Tax Digital: index

Personal allowance: who is entitled to claim

Real Time Information (RTI)

Personal tax account


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