The HMRC has come up with a new way to collect personal tax called Simple Assessment and the roll out starts this month.
While the name sounds nice, looking in more detail, some people are likely to more affected than others when it comes to how much tax is owed. This is because HMRC will be using the data it already has, to calculate the money owed rather than using details from self-assessment forms.
If you have submitted self-assessment returns in the past, HMRC will use that information even if your current circumstances may have changed since you last tax return. So depending on how much tax you paid last time, you could find yourself either better or worse off under the new system.
Fortunately, you will have a window to appeal of 60 days to amend anything that it isn’t right but once the deadline is passed there may be fines for not submitting on time.
Who will be affected by Simple Assessment?
People claiming a state pensions for the first time who have income exceeding the 2016/17 personal tax allowance
Individuals who have paid some tax through the PAYE system, but not the full amount and they can’t pay the outstanding amount through their tax code.