Time to Pay for Simple Assessment debts

Taxpayers with Simple Assessment debts can now set up a Time to Pay arrangement to enable them to pay what they owe in instalments if they are unable to pay their tax bill in full by the deadline. Guidance on setting up a Time to Pay arrangement, which can usually be done online, can be found on the Gov.uk website at www.gov.uk/difficulties-paying-hmrc.

Simple Assessment is a way for HMRC to collect tax from taxpayers with straightforward affairs without the need for them to complete a Self Assessment to return and where tax cannot be collected through the PAYE system.

HMRC are sending out Simple Assessment letters over the next few months. A client may get a Simple Assessment letter if they:

• Owe income tax which cannot automatically be taken out of their income.
• Owe HMRC tax of more than £3,000 or
  • Have to pay tax on their state pension.

The letter will set out how much tax is owed, when it needs to be paid (usually by 31 January after the end of the tax year) and how to pay it.

If a client receives a Simple Assessment letter and thinks that the information in their letter is wrong they should contact HMRC within 60 days of the date on the letter.

Further details on Simple Assessment letters and the introduction of Time to Pay for taxpayers within Simple Assessment can be found in issue 134 of HMRC’s Agent Update publication which is available on the Gov.uk website at www.gov.uk/government/publications/agent-update-issue-134/issue-134-of-agent-update