Simple Assessments

FA 2016, Sch 23 has given HMRC the power to raise simple assessments for income tax and CGT. These seem to replace the need to issue a self assessment form, and even allow HMRC to cancel a notice to complete an SA form. 

Although the power came into effect from 15 September 2016 I can't find any guidance on this from HMRC or elsewhere . Has the Tax Faculty written any guidance?

My questions are:

  • How will simple assessements work in practice?
  • How will simple assessments fit in with determinations?
  • Will a person who receives a P800 also get a simple assessment?
  • How is the simple assessment designed to fit within the MTD framework?


  • HMRC has not published any guidance on Simple Assessment – the only available material is the legislation and explanatory notes. The Tax Faculty has asked HMRC for further details and we will publish these as they become available – the earliest tax year to which the power will apply is 2016/17.

    What we do know is that the power is intended to be used to avoid the need for certain taxpayers to complete self assessment tax returns. It is expected that it will initially be used for those with P800 PAYE underpayments which cannot be coded out and where the individual does not make voluntary payment. Another likely early category is the diminishing group of taxpayers who are required to complete self assessment tax returns because their only income is a state pension which is greater than the Personal Allowance and SA is the only mechanism to collect the tax.

    • We expect that TMA 1970 s28c determinations will continue for those who have been issued with a Notice to File a Tax Return but who have not failed that return
    • Yes, a P800 taxpayer may receive a Simple Assessment in the circumstances mentioned above
    • The power to make a Simple Assessment is likely to be part of the framework for Making Tax Digital for individuals but exactly how that will work is currently unclear