This figure shows how many people received a simple assessment tax bill in 2023/24 – here is who could be affected
More than 1.3million households received an end of year tax bill from HMRC – almost double the number just two years earlier.
This figure shows how many people received a simple assessment tax bill in 2023/24. It was revealed in a Freedom of Information (FOI) request by former pension minister Steve Webb.
You may be sent a simple assessment if you owe tax that cannot be automatically collected through the PAYE system, if you owe HMRC £3,000 or more, or you have untaxed income from sources like savings interest or a second job.
The FOI from Sir Steve revealed a quarter of the tax demands were for amounts under £100 though nearly a quarter were for unpaid tax worth over £1,000.
Sir Steve said the main reason for the surge in simple assessment tax demands is the freezing of tax thresholds.
The income tax personal allowance is currently frozen at £12,570 and will remain at this level until the start of the 2031/32 tax year. He also warned that pensioners are likely to be among those who received a tax demand.
Sir Steve, a partner at pension consultants LCP, said: “For many people, having to deal with the tax office is a hassle they can do without.
“But the continued freezing of the income tax personal allowance means that the numbers getting unwelcome end-of-year tax demands have soared.
“Many of these people will be pensioners whose only income is the state pension, and they now get an annual tax demand, with the amounts growing each year.
“Although the Government has indicated it may address this issue for a subset of pensioners from 2027, a much wider-ranging solution is needed.”
Simple assessment payments can be made in full, or in instalments before the deadline. You can make a payment through the HMRC app, online through GOV.UK, by bank transfer or cheque.
Simple assessment letters are automatically generated and sent to customers when HMRC receives information from employers, Department for Work and Pensions, customers themselves and from banks and building societies.
If you believe an error has been made, you should get in touch with HMRC within 60 days to query it.
The most common code for the current tax year is 1257L for people who have one job or pension. This means you can earn £12,570 in one tax year before being taxed, as this is the current personal allowance.
The most common code for the current tax year is 1257L for people who have one job or pension. This means you can earn £12,570 in one tax year before being taxed, as this is the current personal allowance.
You can find your tax code on your latest payslip, on your P45 if you have recently quit your job.
