Simple Assessment - under assessed

naedanger

For the 2023-24 tax year, I was moved from the Self Assessment process to the Simple Assessment process for the first time.

HMRC's initial assessment excluded all unearned income. I wrote to them to report this, and they eventually issued a revised assessment. However, for unearned income they only provided an aggregate figure and I am sure, from my own records, that their figure is far too low.

So, in early September, I again wrote to HMRC to raise my concern that they had not included all my unearned income. But they have still not replied and so my latest assessment understates the tax I am due to pay.

Does anyone know:

1. If I pay only the assessed amount by 31 January 2025 will I incur penalties or interest charges when HMRC eventually calculates my assessment correctly?
2. Should I expect to receive a breakdown of unearned income by source in my assessments? Or is it normal for them to just provide an aggregate figure?
   

TheSpectator

1. No
2. If you mean interest as an example then no, you won't get a breakdown.

Dazed_and_C0nfused

naedanger said:

For the 2023-24 tax year, I was moved from the Self Assessment process to the Simple Assessment process for the first time.

HMRC's initial assessment excluded all unearned income. I wrote to them to report this, and they eventually issued a revised assessment. However, for unearned income they only provided an aggregate figure and I am sure, from my own records, that their figure is far too low.

So, in early September, I again wrote to HMRC to raise my concern that they had not included all my unearned income. But they have still not replied and so my latest assessment understates the tax I am due to pay.

Does anyone know:

1. If I pay only the assessed amount by 31 January 2025 will I incur penalties or interest charges when HMRC eventually calculates my assessment correctly?
2. Should I expect to receive a breakdown of unearned income by source in my assessments? Or is it normal for them to just provide an aggregate figure?
   

What is this "unearned income"?

Is it a single type of income like interest or have you combined different things, for example interest and dividends?

1.  According to LITRG HMRC can charge late payment interest but no one has ever mentioned this happening on any of the posts on here.

2.  Yes.  As in interest £X and dividends £Y.  But you won't get a breakdown or each individual dividend or interest payment.  You would have to ask for the interest details.  Dividends, if relevant, are probably just whatever you have notified HMRC of.

naedanger

Dazed_and_C0nfused said:

naedanger said:

For the 2023-24 tax year, I was moved from the Self Assessment process to the Simple Assessment process for the first time.

HMRC's initial assessment excluded all unearned income. I wrote to them to report this, and they eventually issued a revised assessment. However, for unearned income they only provided an aggregate figure and I am sure, from my own records, that their figure is far too low.

So, in early September, I again wrote to HMRC to raise my concern that they had not included all my unearned income. But they have still not replied and so my latest assessment understates the tax I am due to pay.

Does anyone know:

1. If I pay only the assessed amount by 31 January 2025 will I incur penalties or interest charges when HMRC eventually calculates my assessment correctly?
2. Should I expect to receive a breakdown of unearned income by source in my assessments? Or is it normal for them to just provide an aggregate figure?
   

What is this "unearned income"?

Is it a single type of income like interest or have you combined different things, for example interest and dividends?

1.  According to LITRG HMRC can charge late payment interest but no one has ever mentioned this happening on any of the posts on here.

2.  Yes.  As in interest £X and dividends £Y.  But you won't get a breakdown or each individual dividend or interest payment.  You would have to ask for the interest details.  Dividends, if relevant, are probably just whatever you have notified HMRC of.

Thanks, I think you and TheSpectator have fully answered my questions.

What you say in point 2 is what I received. I received an aggregate figure for all my interest receipts combined. I had thought I would get this amount broken down to show the amounts, ideally for each account, or failing that each bank, separately because it would make reconciliation easier. I have not received any figure for anything else although I did receive dividend income via a couple of investment platforms (Vanguard and Interactive Investor).

So I will pay now the amount due on my current assessment and wait to receive another assessment in due course.

Dazed_and_C0nfused

naedanger said:

Dazed_and_C0nfused said:

naedanger said:

For the 2023-24 tax year, I was moved from the Self Assessment process to the Simple Assessment process for the first time.

HMRC's initial assessment excluded all unearned income. I wrote to them to report this, and they eventually issued a revised assessment. However, for unearned income they only provided an aggregate figure and I am sure, from my own records, that their figure is far too low.

So, in early September, I again wrote to HMRC to raise my concern that they had not included all my unearned income. But they have still not replied and so my latest assessment understates the tax I am due to pay.

Does anyone know:

1. If I pay only the assessed amount by 31 January 2025 will I incur penalties or interest charges when HMRC eventually calculates my assessment correctly?
2. Should I expect to receive a breakdown of unearned income by source in my assessments? Or is it normal for them to just provide an aggregate figure?
   

What is this "unearned income"?

Is it a single type of income like interest or have you combined different things, for example interest and dividends?

1.  According to LITRG HMRC can charge late payment interest but no one has ever mentioned this happening on any of the posts on here.

2.  Yes.  As in interest £X and dividends £Y.  But you won't get a breakdown or each individual dividend or interest payment.  You would have to ask for the interest details.  Dividends, if relevant, are probably just whatever you have notified HMRC of.

Thanks, I think you and TheSpectator have fully answered my questions.

What you say in point 2 is what I received. I received an aggregate figure for all my interest receipts combined. I had thought I would get this amount broken down to show the amounts, ideally for each account, or failing that each bank, separately because it would make reconciliation easier. I have not received any figure for anything else although I did receive dividend income via a couple of investment platforms (Vanguard and Interactive Investor).

So I will pay now the amount due on my current assessment and wait to receive another assessment in due course.

You can ask HMRC for that breakdown and they will provide it, it just isn't included in the calculation automatically.

Going off a few threads on the MSE Savings & Investments board there would be very long calculations for some people with 50+ accounts 😳