Collecting tax outside self assessment

HMRC has written to a number of taxpayers who receive state pensions removing them from self assessment despite them having a tax liability and there being no clear alternative mechanism to collect the tax. As more and more individuals with just a state pension are drawn into the tax net we look at what other options may be available for HMRC to collect the tax outside the self-assessment system. We put forward these options ahead of the Autumn Statement next week which in all likelihood will leave things just as they currently stand in this matter.

Removal from self assessment

A taxpayer shared a letter they received from HMRC in October 2023. The letter advises that the individual’s 2022-23 tax return is the last one they are required to complete and they should sign into their online tax account to check this tax return...