Overview
- Freedom of Information figures obtained by LCP’s Steve Webb show more than 1.32 million ‘simple assessment’ notices were issued in 2023/24, up from around 675,000 in 2021/22.
- HMRC uses simple assessments to collect tax from people without a PAYE route, notably state pensioners without private pensions and some savers with untaxed interest.
- Most bills were modest, with 24% for £100 or less and 15% for £101–£200, and roughly three-quarters under £1,000.
- A significant minority faced larger charges, including 10% owing £1,001–£2,000 and 13% exceeding £2,000.
- Webb projects the total could surpass two million for 2024/25, while the government plans from April 2027 to exempt people whose only income is the state pension, with operational details yet to be set out.