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Simple assessment, not so simple payment

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18th Jan 2018
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Taxpayers who receive simple assessments have the choice of two payment methods, both of which create issues for certain taxpayers and problems for their tax agents.

Simple approach

The simple assessment is a tax assessment made by HMRC, rather than a self-assessment made by the taxpayer as I explained in simple assessments are coming. It is printed on a form PA302.

HMRC expect to issue 400,000 simple assessments for 2016/17 by the end of this month, so some of your clients may well receive one. If they do, you should also receive a copy as their tax agent.

Taxpayers who are already in self-assessment should not receive a simple assessment, unless HMRC has erroneously set up a duplicate record for that person. The individuals who may receive simple assessments for 2016/17 should be restricted to:

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Replies (21)

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Chris M
By mr. mischief
18th Jan 2018 18:33

The usual load of utter drivel from HMRC, making things as difficult as possible.

Thanks (2)
By gerrysims
19th Jan 2018 07:08

Surely the cheque should also be written by quill pen and delivered by horse !

Thanks (6)
Replying to gerrysims:
By SteveHa
19th Jan 2018 08:30

And don't forget the wax seal on the envelope.

Thanks (4)
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By justsotax
19th Jan 2018 09:11

knowing the revenue, they are probably spending millions on a system that accepts bitcoin.

Thanks (1)
By CazzyT
19th Jan 2018 13:30

We have received a number for clients who are in self assessment - another frustrating waste of time!

Thanks (3)
Replying to CazzyT:
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By johnjenkins
22nd Jan 2018 13:58

Yep we did as well. Not only that we received prior to the 60 day appeal notice. (The 60 days expired before the 31st jan when return is due) It will be interesting to see if they hand out penalties for submitting a correct return and not appealing the SA.
This shows what is the matter with MTD.

Thanks (1)
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By Vaughan Blake1
22nd Jan 2018 09:34

Payslips (or lack thereof!) seem to be a recurring issue this year. We know HMRC want us all to use online banking so that they can sack more people, but a lot of folks can't or won't do internet or phone banking.

We can't use credit cards, we can't go to the Post Office, we can't go to the bank in many towns as they have closed down. Corporation Tax & VAT can't be paid by a cheque in the post.

This should be the easy bit!

Thanks (8)
Replying to Vaughan Blake1:
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By monksview
22nd Jan 2018 10:07

I think they're probably rubbing their hands together, waiting for the raft of late payment charges that will be coming their way. Its all part of a cunning plan...

Thanks (3)
Replying to monksview:
Scooby
By gainsborough
22nd Jan 2018 10:29

monksview wrote:

I think they're probably rubbing their hands together, waiting for the raft of late payment charges that will be coming their way. Its all part of a cunning plan...

Plus the fact that quite a few statements are just stating the 2016/17 balancing payment and still missing out the 1st 2017/18 POA!

HMRC say that they are aware of this issue but are not making it public at the moment...

Thanks (2)
Replying to Vaughan Blake1:
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By Homeworker
22nd Jan 2018 10:27

Vaughan Blake1 wrote:

Payslips (or lack thereof!) seem to be a recurring issue this year. We know HMRC want us all to use online banking so that they can sack more people, but a lot of folks can't or won't do internet or phone banking.

We can't use credit cards, we can't go to the Post Office, we can't go to the bank in many towns as they have closed down. Corporation Tax & VAT can't be paid by a cheque in the post.

This should be the easy bit!

..so we get to waste more of the little time we have in January printing payslips for client who ring up and say they need one please!

Thanks (1)
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By KIKISROSSIDES
22nd Jan 2018 10:23

Talk about complicating taxpayer's life! Include a damn payslip and this should sort everything out!

Thanks (1)
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By KIKISROSSIDES
22nd Jan 2018 10:24

Talk about complicating taxpayer's life! Include a damn payslip and this should sort everything out!

Thanks (0)
By Nick Graves
22nd Jan 2018 11:05

Nah - if they can't easily pay, HMRC eventually sends a man around.

Creates jobs, see? And no shareholders to worry about whether it's cost-effective, or not.

Thanks (0)
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By semoore
22nd Jan 2018 11:35

My son was issued a simple assessment and told to pay £1,100 by 31 January. This is money he does not have, he had thought all his tax had been paid via PAYE but when he changed jobs during the year the new employer did not use the P45 and so he had his personal allowance twice. The simple assessment was issued in a month when he was between jobs again (he is a research fellow and most posts only last for 12 months) so HMRC assumed there was no employment income against which to collect the tax. He has had to go into self assessment in order to get the tax collected via his NOC, apparently this is the only way to "cancel" the simple assessment. Even so it has taken several telephone calls to HMRC to get to this stage. Initially HMRC said he could not go into self assessment! If my son had to pay for my professional time to sort this out it may have been less demanding on his budget to pay the tax in a lump sum!

Thanks (1)
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By 4b4
22nd Jan 2018 13:01

Oh, doesn't it make you look forward to the implementation of MTD!

Thanks (1)
By itp3asso
22nd Jan 2018 16:47

If HMRC were to allow straightforward bank transfer vua provision of a ( their) generated ref number and citing of course the correct HMRC account number and
their ( HMRC) appropriate " company name " designatin then surely this would offer a universally acceptable option with a recorded transaction receiot pathway

They did this on LDF settlements and it worked!.

Too simple ?

Thanks (0)
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By North East Accountant
23rd Jan 2018 08:37

So as we move to a fully digital world one of only two HMRC payment methods is send a cheque in the post!

Thanks (1)
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By richardterhorst
23rd Jan 2018 09:11

OK. A State pension that exceeds the personal allowance.

Info please!!!

Thanks (0)
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By Pam Moreland
05th Feb 2018 11:05

Why does HMRC persist in making things difficult for people who have probably never heard of their personal tax account and wouldn't know how to access it anyway. Many of the people affected by simple assessment will be pensioners who are inclined to believe HMRC is correct whether they are or not. To date I have had a 'simple' assessment showing a refund of over £350 which was not due as the 2015-16 figures were used again for 2016-17 with a credit for tax deducted on interest and a grossed up dividends figure. Very bright!
How hard would it be to enclose a payslip as well. They might actually get paid that way.

Thanks (0)
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By gemmalambshead
14th Feb 2018 10:33

Have phoned HMRC this morning re an arrangement to pay on a client who finds the payment options limited. In the last week HMRC have seen sense and are now accepting payments by direct debit.
I phoned HMRC on the normal number, you then have to ask to be transferred to the payment support team (no direct line number). If you are the client you can set up the direct debit there and then, alternatively the payment support team will phone your client to set up the direct debit.

Thanks (0)
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By johnjenkins
14th Feb 2018 12:42

OK sit back and enjoy.
Received today P800 for client for 6/4/2017 to 5/4/2018 showing PAYE income 6494 (client is still working) and taxed savings income 4762 tax 952.43. A refund of £952.43 will follow.
There is some blurb at the bottom which basically says they will check again at the end of the tax year and will adjust accordingly. I presume after they have refunded.
You can't make this stuff up.

Thanks (0)