HMRC is sending Simple Assessment letters to people who owe Income Tax that cannot be collected automatically through PAYE or dealt with through Self Assessment.
The letters are formally known as PA302 Simple Assessments. They tell recipients how much tax HMRC believes they owe, how the amount was calculated and when it needs to be paid.
For the 2025/26 tax year, HMRC expects to issue around 1.8 million Simple Assessment letters.
Working-age taxpayers began receiving them from 30 June 2026, while the pensioner mailing began from 12 August 2026. A further group of letters connected with bank and building society interest is expected between October and December 2026.
According to HMRC’s latest Simple Assessment guidance, a letter may be issued for reasons including:
- Tax Due On Pension Income
- Tax Due On Savings Interest Or Dividends
- A Second Income That Has Not Been Taxed
- Receiving More Tax-Free Allowance Than Entitled To
- Tax That Cannot Be Collected Through A PAYE Tax Code
- A Larger Tax Underpayment, Typically £3,000 Or More
HMRC receives income information from employers, pension providers, the Department for Work and Pensions, banks and other financial institutions. It can then compare the information with the tax already paid during the year.
A Simple Assessment does not automatically mean the amount HMRC has calculated is correct. Anyone receiving one should check the calculation against their own records before paying.
Last Updated: 24.08.2026
Is A Simple Assessment The Same As Self Assessment?
No. The two systems serve different purposes.
With Self Assessment, the taxpayer normally declares their own income and calculates or confirms their tax position through a tax return.
With Simple Assessment, HMRC calculates the amount based on information it already holds and sends the taxpayer a PA302.
In straightforward cases, the person does not need to submit a Self Assessment tax return simply because they have received a Simple Assessment.
People with more complicated tax affairs, including some people with self-employment, substantial property income or capital gains, may still need to use Self Assessment.
Who Could Receive An HMRC Simple Assessment Letter?
Simple Assessment is mainly aimed at taxpayers who have an Income Tax underpayment that HMRC cannot conveniently collect through their existing PAYE tax code.
This can include:
- Pensioners Receiving Taxable State Pension Income
- People With Untaxed Savings Interest
- People Receiving Taxable Dividend Income
- Employees With An Additional Untaxed Source Of Income
- People Who Received Too Much Tax-Free Allowance
- Taxpayers With Larger PAYE Underpayments
One of the groups receiving particular attention in 2026 is pensioners.
The State Pension is taxable income, but tax is not normally deducted directly before it is paid. Instead, HMRC can collect tax through another pension or employment income where PAYE is available.
If that is not possible, a Simple Assessment may be used.
Why Are More Pensioners At Risk Of Paying Income Tax?
For 2026/27, the standard Personal Allowance remains at £12,570.
At the same time, the full new State Pension has risen to £241.30 a week, equivalent to approximately £12,547.60 over 52 weeks. The full basic State Pension is £184.90 a week.
That leaves someone receiving the full new State Pension only a small amount below the standard Personal Allowance before additional taxable income is considered.
For example, pensioners may also receive:
- Private Pension Income
- Workplace Pension Income
- Additional State Pension
- Employment Income
- Savings Interest
- Investment Income
- Taxable State Benefits
Even relatively small amounts of additional taxable income could therefore affect a pensioner’s final Income Tax position.
MoneyHelper’s guidance on the State Pension and tax explains that State Pension income counts towards taxable income even though the payment itself is generally made without tax being deducted.
Importantly, receiving a State Pension does not automatically mean a pensioner owes tax. Their total taxable income and available allowances determine whether Income Tax is due.
What Should You Check On An HMRC Simple Assessment Letter?
Do not assume that every figure shown on a PA302 is accurate simply because it has come from HMRC.
The letter should explain your taxable income, tax already paid and the amount HMRC believes remains outstanding.
Check the calculation against documents including:
- P60 Or P45 Forms
- Pension Statements
- State Pension Records
- Bank Statements
- Savings Interest Statements
- Relevant Benefits Statements
- Previous Tax Records
Pay particular attention to whether HMRC has included income twice or used an incorrect figure.
Check Your Income Sources
Make sure employment, private pension and State Pension figures match your records for the relevant tax year.
If you receive benefits, check whether they are taxable before assuming HMRC has made an error. Some state benefits are taxable while others are not.
Check Savings And Investment Income
Banks and building societies provide HMRC with information about interest earned.
However, this does not necessarily mean all savings interest results in a tax bill. Depending on your circumstances, the Personal Savings Allowance and starting rate for savings can affect how much interest is taxable.
Check Your Allowances And Adjustments
Review whether HMRC has correctly considered allowances or tax adjustments that apply to you.
These could include:
- Personal Allowance
- Marriage Allowance
- Tax Previously Paid
- Previous-Year Tax Adjustments
- Certain Pension Contributions
- Eligible Tax Reliefs
Your Simple Assessment should also contain a 14-character payment reference beginning with X. You will need the correct reference when paying the bill.
What Should You Do If Your HMRC Tax Calculation Is Wrong?
If you believe the figures in your Simple Assessment are incorrect, do not simply ignore the letter.
Contact HMRC and explain:
- Which Figure You Believe Is Incorrect
- What You Believe The Correct Figure Should Be
- Why You Believe HMRC’s Calculation Is Wrong
- Which Records Support Your Position
You should normally contact HMRC within 60 days of the date shown on the Simple Assessment.
HMRC may ask for supporting evidence such as pension statements, bank statements, payslips or other documents.
Independent Simple Assessment guidance from the Low Incomes Tax Reform Group also explains the 60-day period for challenging a Simple Assessment and the circumstances in which additional tax relief may need to be considered.
If HMRC agrees that the original calculation was incorrect, it can issue a revised Simple Assessment.
If HMRC rejects the challenge, it should issue a decision explaining its position. Taxpayers who still disagree can normally appeal within 30 days of the decision letter.
It is important to remember that challenging the calculation does not automatically suspend the payment requirement. Unless HMRC confirms otherwise, the taxpayer may still need to meet the payment deadline shown on the letter.
What If You Receive A Suspicious HMRC Letter?
Tax-related scams frequently use HMRC’s name to pressure people into making payments.
A genuine Simple Assessment may arrive through the post or be available through your Personal Tax Account.
Be cautious if a message unexpectedly:
- Demands Immediate Payment
- Requests Bank Details Through An Unfamiliar Link
- Threatens Arrest Or Immediate Legal Action
- Requests Payment Through Gift Cards Or Cryptocurrency
- Directs You To An Unrecognised Website
Instead of following suspicious payment instructions, access your HMRC account independently or contact HMRC through established official channels.
When Must You Pay A Simple Assessment And What Happens If You Cannot Pay?
For most people receiving a Simple Assessment relating to the 2025/26 tax year, the timing of the letter determines the payment deadline.
If the Simple Assessment is issued before 31 October 2026, the tax is normally due by 31 January 2027.
If it is issued on or after 31 October 2026 for the 2025/26 tax year or an earlier tax year, the payment is generally due within three months of the date of the letter.
Always check the exact deadline printed on your PA302 because the date shown on the assessment is the one you need to follow.
How Can You Pay A Simple Assessment?
HMRC provides several payment methods.
These can include:
- Online Payment
- HMRC App
- Online Or Telephone Banking
- Bank Transfer
- Debit Card
- Cheque
Make sure the 14-character reference beginning with X is entered correctly so HMRC can allocate the payment to your Simple Assessment.
You do not necessarily have to pay the entire bill in one transaction. Smaller payments can be made before the deadline, provided the full amount has been paid by the required date.
What If You Cannot Afford the Tax Bill?
Do not ignore the assessment because you cannot pay the full balance immediately.
Contact HMRC as early as possible and explain your financial circumstances. Depending on the situation, HMRC may discuss payment support or an arrangement that allows the liability to be cleared over time.
Waiting until the debt has already become seriously overdue can make the situation harder to resolve.
Unpaid tax can potentially lead to interest, penalties or HMRC taking further steps to recover the money, so early contact is generally the safer approach.
Conclusion
HMRC’s Simple Assessment process is becoming increasingly important for taxpayers whose Income Tax cannot be collected automatically, particularly pensioners with State Pension and other taxable income.
Around 1.8 million Simple Assessment letters are being issued for the 2025/26 tax year, with pensioners starting to receive their 2026 letters from August.
Receiving a PA302 does not necessarily mean something has gone wrong. However, it should never be ignored.
Check the income HMRC has used, compare it with your own records and make sure relevant allowances and tax already paid have been taken into account. If something appears incorrect, raise the issue within the required period.
If the calculation is correct, pay the liability by the deadline shown on the letter or contact HMRC promptly if you are struggling to pay.
FAQs
What Is An HMRC Simple Assessment Letter?
A Simple Assessment, also called a PA302, is a tax calculation issued by HMRC when Income Tax is owed but cannot be fully collected automatically through PAYE.
Why Are Pensioners Receiving HMRC Letters In 2026?
HMRC began sending its 2026 pensioner batch from 12 August. Pensioners may receive a PA302 where tax is due on State Pension or other income and cannot be collected automatically.
What Is The Personal Allowance For 2026/27?
The standard Personal Allowance remains £12,570 for 2026/27. Some taxpayers may have a lower or higher effective allowance depending on their circumstances.
Is The State Pension Taxable In 2026?
Yes. State Pension counts as taxable income, although Income Tax is not normally deducted directly from the State Pension payment itself.
How Long Do I Have To Challenge A Simple Assessment?
You should normally contact HMRC within 60 days of the date on the Simple Assessment if you believe the calculation contains incorrect figures.
When Is The 2025/26 Simple Assessment Payment Deadline?
Letters issued before 31 October 2026 generally have a 31 January 2027 deadline. Later assessments for 2025/26 or earlier years generally need to be paid within three months.
Can I Pay My HMRC Simple Assessment In Instalments?
You can make multiple smaller payments before the deadline. If you cannot clear the full bill by then, contact HMRC as early as possible to discuss available payment support.
