Millions of taxpayers are expected to receive Simple Assessment Letters from HMRC, detailing their tax liability for the 2023/2024 tax year. These letters allow HMRC to collect tax without requiring individuals to file a self-assessment tax return.
Taxpayers are being advised that they might soon receive a letter from HMRC , known as Simple Assessment Letters or Tax Calculation Letters. Typically issued between June and March, these letters allow HMRC to collect tax they believe is owed without individuals completing a self-assessment tax return.
This method is used when HMRC cannot adjust one's PAYE tax code to collect the due tax, such as in cases where there is no PAYE income source like a private pension, or when the outstanding tax amount is too significant for PAYE collection. An increasing number of taxpayers, notably pensioners, may find themselves with a tax liability for the first time in years due to stagnant tax allowances not matching the rise in state pension rates and bank interest, reports Birmingham Live. The letters lay out whether you're entitled to a refund or owe more tax from the previous tax year. In this instance, it pertains to the 2023/2024 tax year, detailing subsequent actions required by recipients. The Low Incomes Tax Reform Group has published advice on handling such documentation. They advise: 'If you receive a simple assessment letter from HMRC, you should check the figures carefully. The second page of the letter contains a full tax calculation, which sets out the different sources of taxable income which HMRC believes you had in the tax year.' 'Make sure that the calculation includes all your sources of taxable income in the year, as well as any deductions or reliefs you may be entitled to.' Your simple assessment letter should also provide a concise explanation of how the amount due was calculated. For more details on verifying your simple assessment tax bill, visit the government website. If you disagree with the calculation, you should get in touch with HMRC to clarify why within 60 days from the date of the letter. Failure to contact HMRC within this timeframe means you forfeit the right to dispute the calculation
TAX HMRC SIMPLE ASSESSMENT LETTERS TAX CALCULATIONS TAX LIABILITY
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