What a tax notice of assessment is
Your notice of assessment includes all your taxable income and how much tax you will pay on that income. It will show the allowances, deductions and reliefs that have been taken into account to arrive at the amount of tax that's due.
Reading your tax assessment
The wording used on tax assessment varies depending on your circumstances. Below are some examples of assessments.
|You only have employment income|
Employment income assessment example
Likely you will have paid what's due when you receive your assessment and it will show your balance as nil. If you do have anything left to pay, it will show how much.
Your current ITIS payments should be on track to cover all your tax for this year by December. Your effective rate notice will tell you if there is a possible payment shortfall.
The assessment also confirms your Long Term Care current year estimate.
Paying tax if you're employed
|You have employment income and some income from side-businesses, renting out properties or from investments|
You'll have paid some of your tax through your ITIS payments but you might be told you need to pay the tax owed on your non-employment income.
If non-employment income is more than 75% of your overall income, you'll likely be asked to make a ‘payment on account’ as well as the ITIS payments your employer makes for you.
|You only have 'non-employment' income, for example pensions|
No employment income assessment example
You'll be told you have something to pay before the payment deadline.
In this case you will pay all your tax through our payment on account system, either 2 lump payments or monthly by direct debit.
Your assessment also now tells you in advance what you’ll need to pay to cover the first part of next year’s tax bill.
Paying tax if you work for yourself or you've retired
Notice of assessment requesting payment
These are issued if:
pay tax by salary deductions
only a small amount of your total income is a salary
- you are a 'new taxpayer' and your salary deductions were not enough to fully pay the full amount of tax due
You may have received a payment on account notice earlier in the year, in which case the balance to pay by the surcharge date should be the amount of the assessment less the payment you made.
If the balance is not paid then you may get a surcharge.
What happens if you pay your tax bill late
Checks to make when you receive your tax notice of assessment
Check your assessment it to make sure that you agree with:
- the income you've been assessed on
- that you have been given any deductions that you've claimed and are entitled to
- you've received the correct allowances and reliefs including marginal relief
If you don't agree with the notice of assessment
If you've filed the return you can appeal in writing within 40 days of the date on the notice giving:
- the reason for your appeal
- the amount which you believe you should have been charged
- details of any extra information you can give us to support your appeal
How to appeal your tax assessment
If you've received a default assessment because you didn't file a return, you have 12 months to file the return to replace the default assessment.
You can't appeal against a default assessment.