Compliance

Compliance Essentials: Simple Assessment Letters & PAYE Adjustments in Tax Home UK

Learn how Simple Assessment letters and alterations to PAYE code and Child Benefit reporting are changing what UK taxpayers must do to stay compliant this year.

By NomadicTax Research Team • 5-8 min read • August 20, 2026

## Understanding Simple Assessment HMRC is sending **Simple Assessment letters** for the **2025-2026 tax year** from **30 June 2026** for working-age customers, and **from 12 August 2026** for pensioners. These letters cover income not taxed through PAYE or Self Assessment, such as interest earnings. ([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai)) Key points: - You **do not need** to submit a Self Assessment return when you receive a Simple Assessment letter; payment options include full payment or instalments. ([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai)) - HMRC encourages recipients to verify their letters carefully and pay by the deadline to avoid penalties. ([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai)) - Pensions and bank interest will be included in assessments later in 2026. ([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai)) ## PAYE, Child Benefit, and Digital Services Enhancements HMRC’s **Transformation Roadmap** brings several compliance changes affecting your tax on income. From April 2025 onward: - **Child Benefit payments** are now being reported through your tax code, eliminating Self Assessment for many who were previously required to declare when earnings fluctuated around thresholds. ([gov.uk](https://www.gov.uk/government/publications/hmrc-transformation-roadmap-progress-update-2026/hmrc-transformation-roadmap-update-2026?utm_source=openai)) - The **High Income Child Benefit Charge** (HICBC) can now also be paid through your PAYE code if you’re eligible, reducing the need for separate Self Assessment. ([gov.uk](https://www.gov.uk/government/publications/hmrc-transformation-roadmap-progress-update-2026/hmrc-transformation-roadmap-update-2026?utm_source=openai)) - The Personal Tax Account is being upgraded with clearer tax code explanations, tax event timelines, income source summaries, and forecasted tax liabilities. ([gov.uk](https://www.gov.uk/government/publications/hmrc-transformation-roadmap-progress-update-2026/hmrc-transformation-roadmap-update-2026?utm_source=openai)) - Online registration services for Self Assessment are being simplified. Whether you are starting new, or previously inactive, you’ll see fewer steps to activate your record. ([gov.uk](https://www.gov.uk/government/publications/hmrc-transformation-roadmap-progress-update-2026/hmrc-transformation-roadmap-update-2026?utm_source=openai)) ## What to Do Now to Stay in Good Standing - If you receive a Simple Assessment letter, check it carefully: verify income stated, especially from interest or employer reports. Pay what you owe (or set up instalments) by the deadline specified. - Regularly review your PAYE tax code. If your income or benefits (including Child Benefit) change, this may affect deductions. - Register for Self Assessment by **5 October 2026** (deadline) if you earned income above thresholds or started a side hustle that exceeds the **£1,000 trading allowance**. ([gov.uk](https://www.gov.uk/government/news/say-i-do-to-getting-your-side-hustle-tax-right?utm_source=openai)) - Ensure your Personal Tax Account profile is up to date—correct address, full income sources, notices—leveraging HMRC’s enhancements. ## Example Cases - *Eleanor* has a part-time job and £500 bank interest. HMRC sends a Simple Assessment letter considering the interest income. Eleanor checks and realises she’s owed tax of £100; she makes payment via the online Personal Tax Account and avoids a penalty. - *Robert* earns £60,000 salary and previously claimed Child Benefit. His income puts him over the High Income Child Benefit threshold, but under the new system he can pay the charge via his tax code, rather than file Self Assessment just for that purpose. He checks his code through his Personal Tax Account. ## Key Takeaways By using your digital services and taking note of HMRC’s changes to how Child Benefit, PAYE codes and Simple Assessment work, you can reduce filing obligations and stay compliant with less effort. Always read assessment letters and act before penalties kick in.