In January 2018 HMRC hope to have issued something in the order of 400,000 simple assessments or to give it their correct name forms PA302. So the chances are that one of your clients may well have received one so here are a few facts about the assessments which HMRC are looking to form a major part of their administrative savings as they seek to take more and more taxpayers out of the Tax Return system. This is of course a laudable objective but will they get the assessments right first time or will it just mean more time being spent as appeals and queries abound causing consternation to taxpayers and revenue staff alike? Only time will tell.
Tax due is payable 31 January following year of assessment.
If the simple assessment is issued after 31 October following the year of assessment the tax due date is 3 months after the date of issue.
No payslips are proposed to be sent with the assessment so if you are paying by cheque better send a covering letter I guess.
Apparently no reminders will be sent but as is HMRC’s way these days they say they are looking into it.
Late payment penalties will of course apply if the tax due is paid late.
The taxpayer can query an assessment within 60 days and HMRC must answer the query and as a result they must either confirm, amend or vacate the assessment.
After the 60 days the assessment becomes binding.
The taxpayer can only formally appeal an assessment after they have queried the assessment and received an answer.
Taxpayers can opt out of receiving simple assessments in favour of submitting a Tax Return. Imagine if everyone did that?
HMRC are stating that Accountants will receive copies of the assessments.
Simple assessments will only be applied to taxpayers in the Paye system.
Accountants may want to seriously consider opting their clients out of this system at least until HMRC have demonstrated that they can actually deliver.
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