If you are a taxpayer subject to Self Assessment, you may receive a notice from HMRC that seems to indicate you owe less tax than expected for the 2025/26 period or are due a refund.
Although it is possible for this to be your situation, the information you have received may not be entirely accurate.
This is due to some mistaking a Simple Assessment for a Self Assessment, so we want to help you understand the difference and know what your next steps should be.
A Simple Assessment, also known as a PA302, is issued by HMRC as a way of providing a rough tax calculation based on the information it currently has about you.
The information is gathered from employers, banks and the Department for Work and Pensions (DWP), which may be sufficient to capture the full income for some taxpayers.
However, if you receive dividends from close companies, rental income or are a sole trader, then much of your income may have escaped HMRC’s notice.
Where this happens, it is possible for the Simple Assessment to underestimate the amount of tax owed and could indicate that your tax position is very different from what it really is.
The confusion comes from HMRC only being able to act on the information it has, but taxpayers believing that the Simple Assessment represents their full tax burden for the accounting period.
If you have received a Simple Assessment, you should seek professional accounting support to ensure that you are not mistaken in your approach.
Our team can help you understand what information HMRC is currently using and what more it should receive.
It is important to keep in mind that a Simple Assessment is in no way an indication that your Self Assessment has been handled.
If you have not yet submitted your Self Assessment tax return, this must be done before 31 January and your outstanding tax bill must be paid by the same date.
We can help you handle your Self Assessment with confidence, keeping you aware of the next steps you need to take to meet the upcoming deadline and be fully compliant.
Whether a Simple Assessment has left you uncertain of your tax position or you want to ensure your Self Assessment is on track, we are happy to help.
Speak to our team for expert Self Assessment tax return support, including understanding Simple Assessments.
