Many people are familiar with the Self-Assessment tax system, especially anyone who is self-employed or earns income outside of a regular PAYE job. However, some individuals may instead receive a Simple Assessment notice from HMRC, and they may also have a payment deadline of 31 January 2025.
HMRC issues Simple Assessment letters to people it believes owe tax but who are not required to complete a full Self-Assessment return.
This can include individuals who:
Owe £3,000 or more in tax
Cannot have the tax collected through their PAYE code
Need to pay tax on their State Pension
If You Think the Letter Is Incorrect
If you receive a Simple Assessment and believe the figures are wrong, or that the notice shouldn’t apply to you, contact HMRC within 60 days to challenge it. The payment deadline depends on when your letter was issued.
Letters issued before 31 October 2024 (for the 2023/24 tax year): tax must be paid by 31 January 2025.
Letters issued after 31 October 2024 (covering the same tax year or possibly an earlier year): payment is due three months from the date on the letter.
What the Letter Will Show
Your Simple Assessment should detail:
Your taxable income (from employment, pensions, or benefits)
Any tax already paid
The outstanding tax HMRC says you owe
It’s important not to assume these figures are correct. HMRC can make mistakes, so check the numbers carefully.
You can verify income and tax using:
Your P60
Bank statements
Letters from the DWP for State Pension or benefits
If your benefits are paid every four weeks, remember to multiply the payment by 13 (not 12) to calculate your annual total.
HMRC also provides an online tax checker that can help you estimate whether the amount seems accurate. If things still don’t add up, speak with HMRC or you can reach out to us and we can look into it.
If You Disagree or Cannot Afford to Pay
If you believe the figures are wrong, contact HMRC within 60 days to explain what you think needs correcting. If HMRC accepts the revised numbers, they will issue a new assessment with an updated amount and deadline.
If HMRC disagrees, you are still required to pay the tax by the deadline unless HMRC confirms otherwise. If your deadline is approaching but the dispute is unresolved, you must still make the payment. Afterward, you may appeal the decision, usually within 30 days of receiving HMRC’s response.
Payments can be made online, via bank transfer, or by cheque.
If You Can’t Pay the Full Amount
If you're unable to pay on time, contact HMRC as soon as possible. They may allow you to set up a Time to Pay arrangement, but typically only after the payment deadline has passed.
You will need to provide:
Your National Insurance number
Your UK bank details
Your income and spending information
Details of any savings or investments
Be aware that HMRC expects you to use available savings or assets to reduce your outstanding balance where possible.
Need Help?
If you receive a Simple Assessment and aren’t sure whether the figures are correct, feel free to reach out by calling us on 0161 976 5999 or you can email us at mail@twjac.com. We can review the details with you and help you understand what action to take.
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