If you owe income tax that can’t be collected automatically – for example, tax on bank interest or your State Pension – HMRC may send you what’s called a simple assessment notice.
The notice is a letter which explains how much tax HMRC thinks you owe based on the information they have. It’s important to check the figures against your own records, such as bank statements and any letters from the Department for Work and Pensions, to make sure everything matches up.
If you usually complete a Self Assessment tax return, you shouldn’t also receive a simple assessment. If you do, HMRC should withdraw it. You have 60 days from the date on the notice to challenge the figures or request that it’s withdrawn – and we’re very happy to help with that.
Most people will only receive one notice, but HMRC might send more than one for the same tax year. For example, if you’ve already had a letter for 2024/25 that didn’t include your bank or building society interest, HMRC may send a second letter once that information arrives. The updated notice will show the total tax due for the year, even if you’ve already paid some. Just remember to subtract any earlier payments before settling the remaining balance.
The payment deadline depends on the date on the notice:
- Dated before 31 October: payment is due by 31 January.
- Dated on or after 31 October: you’ll have three months from the date of issue to pay.
If you’re unable to pay in full, HMRC’s new online Time to Pay system lets you set up an installment plan yourself.
Simple assessment letters for the 2024/25 tax year are being sent out now. If you’ve received one and you’re unsure whether the calculation is right, please feel free to get in touch with our friendly team to discuss your tax situation.