What is a simple assessment tax bill?

HM Revenue & Customs (HMRC) issues a simple assessment to individuals who owe income tax of at least £3,000 or owe tax on their state pension which cannot be taken straight from their income. 

If you have received a simple assessment letter, HMRC will have made its tax calculation based on the information it holds about you or has gained using its resources. It is important to check the amounts included in the letter match your records so you can satisfy yourself that the tax calculation is correct. 

You may need your P60 to check your gross salary or pension before any tax was deducted and bank statements to check the amounts you received into your bank account for state pension. Do note that state pension is paid every four weeks rather than monthly so multiplying your regular payment by 13 (not 12 months) will equal the amount paid in a year. 

If you agree to the amounts, make your payment to HMRC either online, by bank transfer or cheque. 

If you think the amounts are wrong, you should contact HMRC within 60 days to ask the tax authority to check and confirm the amounts. HMRC will issue a new simple assessment letter if it agrees or, if it disagrees, HMRC will explain its decision. You will need to pay the tax it has confirmed. You can appeal against HMRC’s disagreement and provide further information to explain your reasoning if you need to. 

Date published 9 Aug 2024 | Last updated 29 Aug 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

---