HM Revenue & Customs (HMRC) has begun distributing new forms for self-assessment tax returns which are pre-filled using their own data on individual taxpayers.
HMRC's so-called ‘simple assessment’ tax system was devised with the aim of saving taxpayers the hassle of having to calculate exactly how much tax they owe. However, professionals within the accountancy sector believe at least one-in-ten pre-filled forms using HMRC data will contain errors. The result of which could mean individuals over and underpaying their tax.
Furthermore, those who discover that the amount charged is too large or too small will only have a 60-day window to challenge and correct the figure.
HMRC's simple assessment system is powered by its ‘Connect’ platform, which draws on data from a plethora of government and corporate sources to generate profiles of each taxpayer’s overall income.
An HMRC spokesman confirmed the system was aimed at bringing millions of UK taxpayers out of having to complete traditional self-assessment tasks.
"The rub for some customers in this old process was that HMRC already has all the information they are providing to us on their tax returns,” he said.
"Self-assessment was a complete and utter waste of their time. Simple assessment is the future but it’s only baby steps at the moment.”
However, those with more complex tax affairs and self-employed professionals are unlikely to be moved onto the simple assessment system at any point.
If you're a self-employed individual or someone that’s confused about organising your tax affairs and ensuring you pay the correct amount of tax, your local TaxAssist Accountant can do the hard work for you.
We use HMRC-approved software to calculate your tax liabilities, complete your self-assessment tax return and file the return online. We’ll also liaise with you directly on the amount of tax to be paid and when it is due.
To arrange an initial consultation with your nearest TaxAssist expert you can call our experienced team today on 0800 0523 555 or email us via our online enquiry form.