HMRC is sending Simple Assessment letters to approximately 1.8 million people who may owe tax that was not collected through PAYE or Self Assessment.
Recipients should compare the income and tax figures in the letter with their own records. For most people receiving a letter before 31 October 2026, the payment deadline for the 2025 to 2026 tax year will be 31 January 2027. A different deadline may apply where the letter is issued later.
Taxpayers who believe the calculation is incorrect should contact HMRC within 60 days rather than simply ignoring the demand.
HMRC Simple Assessment Letters: Key Information
| Assessment detail | Official information |
| Official letter name | Simple Assessment or PA302 |
| Tax year covered | 6 April 2025 to 5 April 2026 |
| Expected number of letters | Around 1.8 million |
| Working-age letters began | 30 June 2026 |
| Pensioner letters begin | 12 August 2026 |
| Additional interest-related letters | October to December 2026 |
| Usual deadline for letters received before 31 October 2026 | 31 January 2027 |
| Deadline for relevant letters issued on or after 31 October 2026 | Within three months of the letter date |
| Time allowed to challenge incorrect figures | 60 days |
| How letters are delivered | By post or through a Personal Tax Account |
| Is a tax return normally required? | No, payment can be made without submitting a return |
| Payment methods | HMRC app, online payment, bank transfer or cheque |
The specific payment date printed on the PA302 letter should always be treated as the controlling deadline.
Why Is HMRC Sending Millions of Assessment Letters?
HMRC issues Simple Assessment calculations when its records show that a person owes Income Tax that cannot be collected automatically through their tax code.
The assessments are generated using information supplied to HMRC by organisations such as:
- Employers
- Banks and building societies
- Pension providers
- The Department for Work and Pensions
- Other financial institutions
This data may reveal income on which insufficient tax has been deducted. The process is part of HMRC’s routine annual reconciliation of taxpayers’ records rather than a new type of tax investigation.
Working-age taxpayers began receiving the latest letters from 30 June 2026. Pensioners are due to start receiving them from 12 August 2026, while another group of letters will be issued between October and December using Bank and Building Society Interest data.
The full announcement can be read through HMRC’s official Simple Assessment warning.
What Is a Simple Assessment Letter?
A Simple Assessment is an Income Tax calculation produced directly by HMRC. It is used where tax is due but requiring the individual to complete a full Self Assessment tax return would not normally be necessary.
The PA302 letter should show:
- The taxable income HMRC has recorded
- Income Tax already paid
- The remaining tax owed
- The reason for the underpayment
- The payment reference
- The deadline for payment
HMRC may send the document by post or place it in the taxpayer’s online Personal Tax Account.
A Simple Assessment should not be confused with a notice requiring someone to file a Self Assessment tax return. The PA302 itself calculates the amount HMRC believes is payable.
Who Might Receive a PA302 Letter?
A person may receive a Simple Assessment letter where HMRC cannot collect the full amount of tax through PAYE or another automatic process.
Tax on Savings Interest or Dividends
Banks and financial institutions report interest information to HMRC. A tax charge may arise when an individual’s taxable savings interest exceeds the allowances available to them.
Dividend income may also result in tax becoming payable where the relevant tax-free allowance has been exceeded.
Untaxed Second Income
A taxpayer may have additional employment, casual earnings, consultancy income, property income or another source of money from which tax was not deducted.
Receiving income from more than one source does not automatically mean tax is owed. The position depends on the amount received, available allowances and tax already deducted.
Pension Income
Pension income can create an underpayment where the correct amount of tax has not been deducted through PAYE. State Pension income is taxable, although it is normally paid without tax being deducted before payment.
HMRC has confirmed that pensioners will begin receiving the 2025 to 2026 Simple Assessment letters from 12 August 2026.
Too Much Tax-Free Allowance
An individual may have been given more tax-free allowance through their tax codes than they were entitled to receive.
This can happen where allowances have been applied across multiple sources of income or where HMRC did not initially have complete information.
Tax That Cannot Be Collected Through a Tax Code
HMRC may use Simple Assessment where the amount cannot reasonably be recovered through a future PAYE tax code. This can include larger underpayments, typically amounts of £3,000 or more, although owing less than £3,000 does not automatically rule out receiving a PA302.
What Should Taxpayers Check in the Letter?
Recipients should not assume that every figure is correct simply because the letter was produced automatically.
HMRC advises taxpayers to compare the calculation with their own financial records. Relevant evidence may include:
- P60 and P45 forms
- Payslips
- Pension statements
- Bank and building society statements
- Dividend vouchers
- Department for Work and Pensions letters
- Previous tax calculations
The taxpayer should check that the income belongs to them, relates to the correct tax year and has not been duplicated.
Where a benefit is paid every four weeks, there are normally 13 payments in a full year rather than 12. HMRC specifically advises multiplying a regular four-weekly benefit payment by 13 when checking the annual figure.
What Should Someone Do if the Calculation Is Wrong?
A recipient who believes HMRC has used incorrect information should contact the department within 60 days of receiving the assessment.
They should explain:
- Which figure appears to be incorrect
- What the correct amount should be
- How the correct figure was calculated
- What supporting records are available
If HMRC accepts that the original calculation was wrong, it should issue a replacement Simple Assessment.
If HMRC disagrees, it should send a decision explaining its reasoning and the available appeal process. An appeal must generally be made within 30 days of the decision letter.
Importantly, challenging a calculation does not automatically suspend the payment deadline. The amount generally remains payable unless HMRC confirms that the deadline has been postponed.
When Must a Simple Assessment Bill Be Paid?
The deadline depends partly on when HMRC issues the letter.
For the 2025 to 2026 tax year:
- A letter received before 31 October 2026 will normally require payment by 31 January 2027.
- A relevant letter issued on or after 31 October 2026 will normally require payment within three months of the letter date.
Recipients should follow the date displayed on their own letter because HMRC may specify a different deadline in individual circumstances.
How Can a Simple Assessment Bill Be Paid?
HMRC says payment can be made through:
- The HMRC app
- The online Simple Assessment payment service
- Online or telephone banking
- Bank transfer
- Debit card
- Cheque
The letter contains a 14-character payment reference beginning with “X”. Using the correct reference is important because it allows HMRC to allocate the payment to the right assessment.
Taxpayers may split the bill into smaller payments before the deadline, provided the full balance reaches HMRC on time. This is different from a formal payment arrangement for overdue tax.
What if Someone Cannot Pay the Full Amount?
A person experiencing financial difficulty should contact HMRC as early as possible.
HMRC may agree to a payment plan where it considers the proposed instalments affordable. Whether an arrangement is available will depend on the taxpayer’s circumstances, income, expenditure, assets and ability to pay.
Ignoring the letter is unlikely to improve the position. An unpaid Simple Assessment may lead to overdue-payment correspondence and further collection activity.
How Can Someone Check Whether the Letter Is Genuine?
Simple Assessment letters are genuine HMRC communications, but criminals may imitate official tax correspondence.
A recipient can reduce the risk of fraud by:
- Signing into their Personal Tax Account independently rather than following an unexpected link.
- Checking whether the assessment appears in the account.
- Comparing the correspondence with HMRC’s published list of genuine contacts.
- Accessing payment services by typing GOV.UK directly into the browser.
- Avoiding payments to personal bank accounts or unfamiliar third parties.
HMRC maintains an official service for checking whether recently issued letters, emails, telephone calls and text messages are genuine. The list is helpful but does not include every communication sent by the department.
Practical Simple Assessment Examples
Example 1: Pension Income and Savings Interest
A pensioner receives the State Pension, a workplace pension and interest from several savings accounts.
The workplace pension provider deducts tax through PAYE, but the combined income reported to HMRC shows that additional Income Tax is due. HMRC may issue a PA302 instead of requiring a full tax return.
The pensioner should compare the letter with pension statements, bank statements and DWP records before paying.
Example 2: A Second Job Was Not Fully Taxed
An employee works in one full-time job and takes a temporary second job during the year.
The second employer uses a tax code that does not collect enough tax. Once HMRC reconciles the employment records, a Simple Assessment may be issued for the underpayment.
The letter does not necessarily suggest that the employee did anything wrong. It records the amount HMRC believes remains outstanding.
Example 3: A Letter Is Issued Late in the Year
A taxpayer receives a PA302 dated 20 November 2026 following HMRC’s review of bank interest information.
Because it was issued after 31 October, the recipient should not automatically assume that the deadline is 31 January 2027. The payment date shown in the letter may instead be three months after its issue date.
These examples are illustrative. The tax outcome will depend on the individual’s actual income, allowances, tax codes and payments.
Final Takeaway
HMRC’s message is straightforward: anyone receiving a Simple Assessment letter should open it, verify the information and take action before the stated deadline.
Approximately 1.8 million PA302 calculations are being issued for the 2025 to 2026 tax year. The letters may affect employees, pensioners, savers and people with additional sources of income.
Recipients should compare the assessment with their P60s, pension records, bank statements and DWP correspondence. Incorrect figures should be challenged within 60 days, while genuine amounts should be paid by the deadline shown.
Frequently Asked Questions
What is a PA302 letter from HMRC?
A PA302 is an official Simple Assessment tax calculation. It sets out the income HMRC has recorded, tax already paid, the remaining amount owed and the payment deadline.
Why has HMRC sent a Simple Assessment?
The letter is normally sent because HMRC believes Income Tax is due but cannot collect it automatically through PAYE. Possible reasons include pension income, untaxed savings interest, dividends, a second income or excessive tax-free allowances.
Is a Simple Assessment the same as Self Assessment?
No. Self Assessment generally requires the taxpayer to submit a tax return. A Simple Assessment is calculated by HMRC and can normally be paid without filing a return.
When is the 2025 to 2026 Simple Assessment deadline?
For letters received before 31 October 2026, the usual deadline is 31 January 2027. Letters issued later may have a deadline three months after the letter date. The recipient should follow the date printed on the PA302.
Can a Simple Assessment be paid in instalments?
Smaller payments can be made before the deadline as long as the full balance is paid on time. Someone who cannot pay by the deadline may be able to discuss a formal payment arrangement with HMRC.
What happens if the income figure is incorrect?
The recipient should contact HMRC within 60 days, identify the incorrect figure and provide the amount they believe should have been used.
Can HMRC send a Simple Assessment online?
Yes. The calculation may arrive by post or appear in the taxpayer’s Personal Tax Account.
Do pensioners have to pay tax on the State Pension?
The State Pension is taxable income, although tax is not normally deducted directly from the payment. Whether tax is actually owed depends on the person’s total taxable income and available allowances.
Can a taxpayer ignore the letter if they disagree with it?
No. Disagreement should be raised through HMRC’s review and appeal process. Ignoring the letter does not remove the assessment or stop the payment deadline.
Note: This article has been reviewed against official HM Revenue and Customs and GOV.UK guidance.