HMRC’s new simple assessment tax system could lead to people paying the incorrect amount of tax, tax and advisory firm Blick Rothenberg.

Effective from September 2017, the new system means that rather than asking individuals to fill in a return with lots of information, HMRC will now use data it already holds to calculate what tax is owed. The categories of taxpayers under the new simple assessment are limited to new state pensioners with income over the 2016/17 personal allowance (£11,000) and those who have underpaid tax through PAYE, but there is no mention for those who have overpaid tax.

The firm said “very few” will benefit.

Partner Nimesh Shah said: “The actual concept makes sense but the UK's complex personal tax code makes the proposition largely unworkable, few are likely to benefit and it will possibly lead to people paying the incorrect amount of tax.

“Taxpayers are relying on HMRC's data being correct. They will still need to review the return to ensure accuracy and will only have 60 days to appeal the return if they believe it is incorrect, which isn’t enough time. There have been instances where HMRC’s system has got the calculations wrong and resulted in people being penalised.”

Assistant manager Paul Haywood-Schiefer added: “Actually, the 60 day appeal window sharply shortens the period of time people have to gather the information needed to accurately complete their tax returns.

“Rather than having nine months after the end of the tax year to put together their information and check they have everything before submitting a tax return of their income and gains for a year, the individual is now going to receive a calculation from HMRC at some point, and will then have just 60 days to check it, get any further information from their employers or banks, to then agree or go back to HMRC with amendments.”

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