HMRC is expected to issue around 1.8 million Simple Assessment letters for the 2025/26 tax year and has encouraged recipients to check them carefully and take any necessary action.
A Simple Assessment letter (PA302) is a tax calculation issued when HMRC believes additional tax is due and cannot collect it through PAYE or Self Assessment. The letter sets out how much tax is owed based on the information held by HMRC.
You may receive a Simple Assessment letter where tax is due on income that has not already been collected through PAYE. Examples can include savings interest, pension income, a second source of income, situations where too much tax-free allowance has been given, or cases where the amount owed cannot be collected through a tax code.
Why are more people receiving these letters?
HMRC expects to issue significantly more Simple Assessment letters for 2025/26 than in previous years.
ICAEW notes that factors such as the continued freeze of the personal allowance, increases in the State Pension and higher levels of savings interest may be contributing to the growing number of taxpayers affected.
What should you do if you receive one?
If you receive a Simple Assessment letter, it is important to check the figures against your own records. HMRC recommends reviewing the information carefully before making payment.
If you believe the calculation is incorrect, have questions about the figures used, or think the assessment should not have been issued, you should contact HMRC. ICAEW similarly advises taxpayers to review the calculation and raise any concerns where necessary.
When does the tax need to be paid?
For most recipients, any tax due under a Simple Assessment for 2025/26 must be paid by 31 January 2027, unless a different payment date is shown on the letter.
HMRC states that payment can be made using a range of methods, including the HMRC app, online services, bank transfer or cheque.
Receiving a Simple Assessment letter does not, by itself, mean that you are required to complete a Self Assessment tax return. HMRC's Simple Assessment process is designed to allow tax liabilities of this type to be settled without submitting a return where no separate filing obligation exists.
Unsure whether the calculation is correct?
If you have received a Simple Assessment letter and are uncertain about the figures used, it may be worth reviewing the calculation before making payment. This can be particularly important where the assessment includes savings income, pension income or other sources of taxable income that may differ from HMRC's records.
Sources
GOV.UK - HMRC urges customers not to ignore Simple Assessment letters