HMRC is urging those who receive a Simple Assessment letter this summer to check it carefully and pay any tax owed by the deadline.
- HMRC will send Simple Assessment letters for the 2025 to 2026 tax year this summer.
- The letters are sent to those who have tax to pay on income that has not been taxed through Pay As You Earn (PAYE) or Self Assessment.
- HMRC is encouraging recipients to not ignore the letters.
HM Revenue and Customs (HMRC) is encouraging people who receive a Simple Assessment letter this summer to not ignore it, and to check the details and pay any tax owed.
Every year HMRC writes to people who need to pay tax on income which has not been collected through PAYE or Self Assessment. The letters – known officially as PA302 – set out exactly how much tax is owed and why.
Customers may receive a Simple Assessment tax calculation letter if they have tax to pay that HMRC cannot collect automatically, for example:
- there is tax to pay on interest on savings or dividends
- a second income has not been taxed
- tax is due on pension income
- received more tax-free allowance than they were entitled to
- the tax cannot be collected through a tax code (for example, larger amounts owed, typically £3,000 or more)
Myrtle Lloyd, HMRC’s Chief Customer Officer:
If you receive a Simple Assessment letter and have tax to pay, please don’t ignore it. It is quick and easy to pay any tax owed via the HMRC app.
If you need extra support, or want to find out more, search ‘Simple Assessment’ on GOV.UK.
HMRC will issue around 1.8 million Simple Assessment letters. People should check the figures in their letter against their own records and pay any tax owed by 31st January 2027, unless a different date is shown. Payments can be made in full or in instalments before the deadline and do not require a tax return.
Customers can pay using the free and secure HMRC app,online via GOV.UK, by bank transfer or by cheque. Visit GOV.UK for a full list of payment methods.
Detailed guidance on Simple Assessment – including a dedicated guide for pensioners – is available on GOV.UK. HMRC’s new Tax Confident website also offers clear, simple resources to help people understand their tax affairs with confidence.
The letters are official and arrive by post or appear in a customer’s Personal Tax Account online. Customers can check if a letter from HMRC is genuine on GOV.UK.
More information about Simple Assessment.
Simple Assessment (PA302) letters are automatically generated when HMRC receives data from employers, The Department for Work and Pensions (DWP) and financial institutions confirming that tax is due. This is a routine annual process.
Working-age tax payers began receiving letters from 30th June 2026. Pensioners will begin receiving letters from 12th August 2026. A second tranche of letters will be sent between October and December 2026, relating to Bank and Building Society Interest (BBSI) data.
Opinion
Often employees blame their employer for underpayments of Income Tax as if course, the employer collects their tax. So a tax demand must be because of the employers payroll error!
Payroll applies tax calculations based on HMRC instruction and, although is some cases may be accurate, is based on assumptions without the full knowledge of an individual circumstances that relate to tax.
So no, an employer and payroll is not responsible for the full individuals tax accounting requirements or resulting tax liabilities. HMRC make an annual assessment once all the details are known to recalculate and compare with amounts of tax that have been collected.
If too much tax has been collected, the individual may be due a tax refund. If too little tax has been paid, then the individual will receive a tax bill, sometimes referred more negatively as a tax demand.
PAYadvice.UK 5/8/2026