HMRC, the government's tax authority, is set to send an important tax letter to hundreds of thousands of UK residents this month urging them “not to ignore it”.
UK Households to Receive Important Tax Calculation Notices
UK households will get a Simple Assessment tax calculation notices, referred to as PA302 letters. If you have Income Tax due that cannot be deducted automatically from your earnings or if you owe HM Revenue and Customs (HMRC) £3,000 or above, you might receive a Simple Assessment letter.
You might receive letters if you are required to pay taxes on your State Pension. HMRC will deliver your Simple Assessment letter either via mail or to your tax account if you possess one.
This letter will display your taxable revenue, including your salary, pensions or public assistance, the amount of Income Tax you have already paid and the tax you need to settle.
Make sure to check that the numbers mentioned in your letter match with what you have, in your records like bank statements P60, or any letters you've received from the Department for Work and Pensions (DWP).
If you receive state benefits every four weeks, calculate the amount paid in a year by multiplying your payment by 13 instead of 12.
HMRC said: “The amount of tax owed can vary based on an individual’s circumstances. Paying the tax calculated on the letter avoids the need for customers to register for Self-Assessment and complete a tax return.”
If the figures are accurate, you should settle your Simple Assessment tax bill. The payment deadline is either 31 January, for any taxes from the tax year, or within 3 months of receiving the notice if it arrived after 31 October. The tax year spans from 6 April, to 5 April.
Important HMRC Tax Payment Deadlines for 2023/24
HMRC has also reminded individuals who wish to divide the cost of their 2023/24 tax payment that the date for making a “payment on account”'s, is due on Wednesday, July 31st.
Regarding the reminder, HMRC explained: “More than 12 million people need to file a Self Assessment return for 2023/2024 tax year and pay any tax owed before January 31, 2025.
“However, to help spread out payments throughout the year, many people pay their taxes by making two payments on account.
“If the previous year’s tax bill was over £1,000, each payment is half that amount with the first payment made on January 31, and the second due on July 31.”
If there remains any outstanding tax amount after customers have completed their payment, they will be required to submit a “balancing payment” by January 31, 2025.