HMRC will be issuing simple assessments (PA302) over the next six weeks to 560,000 individuals who have outstanding tax liabilities for the 2023/24 tax year.
Simple assessments are sent to taxpayers who owe tax that cannot be collected through a Pay As You Earn (PAYE) tax code and who do not meet the criteria for completing a self-assessment return.
The notification, whether in letter form or its paperless equivalent, includes a calculation of the tax owed based on information HMRC has obtained from third parties. This data comes from employers, pension providers, banks, building societies, and other government departments, such as the Department for Work and Pensions. The calculation may also account for factors such as claims for employment expenses, other untaxed income like dividends, and higher rate relief for gift aid and personal pension contributions.
The letters provide instructions on how to make a payment and outline the steps to take if there is a disagreement with the figures. The payment deadline is typically 31 January or three months from the date of the statement, whichever is later.
Around 140,000 pensioners whose sole income is the state pension will receive a simple assessment because their pension income exceeds the personal allowance of £12,570.
HMRC has released a guide specifically to help pensioners understand the simple assessment process.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services Limited - a Marketing & Content Agency for the Professional Services Sector.
