Compliance
Simple Assessment: What UK Taxpayers Need to Know for 2026/27
From letters arriving this summer to payment deadlines in January, Simple Assessment is becoming a key tax compliance tool—understanding it can save you stress and penalties.
By NomadicTax Research Team • 5-8 min read • August 13, 2026
## What is Simple Assessment?
Simple Assessment, often referred to by its HMRC form number **PA302**, is a calculation process HMRC uses when it discovers income that hasn’t been taxed via PAYE or Self Assessment (for example interest, dividends, or pension income). Instead of filing a return, you receive a letter with the tax calculation and instructions to pay.([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai))
## Key Changes for 2026/27
- HMRC is sending out **Simple Assessment letters for the 2025–26 tax year** during summer 2026.([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai))
- These letters go to individuals with income not collected through existing PAYE or Self Assessment arrangements (e.g. second incomes, savings, or pensions).([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai))
- The payment deadline is **31 January 2027**, unless another date is shown on the assessment. Instalment options may be available.([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai))
## Who Should Expect a Letter?
You’ll receive a Simple Assessment if:
- You have untaxed income (e.g. interest from savings, dividends, or > £3,000 of untaxed income).([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai))
- Your tax liability arises outside of Self Assessment and cannot be collected through PAYE.
## What To Do If You Get One
1. **Don’t ignore it.** Verify the figures in the PA302 letter against your records. HMRC urges prompt attention.([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai))
2. **Pay by the deadline**, or set up instalments if you're eligible.
3. **Keep Proof:** Retain evidence of any payments.
4. **Seek clarification** if you believe HMRC is in error—it may be possible to dispute or correct the assessment.
## Common Misunderstandings Clarified
| Misunderstanding | Reality |
|------------------|---------|
| It’s like a Self Assessment return | No—you don’t file one unless HMRC explicitly expects it; you only pay the amount calculated by HMRC. |
| The letter is optional | No—you must respond or it could go over to late payment penalties or interest. |
| Can't appeal | You *can* dispute if you think the calculation is incorrect (e.g. missing data). |
## Examples
- **Pensioner with untaxed pension income:** If your pension provider didn’t deduct tax and HMRC knows about it, you’ll get a PA302 letter detailing the pension income and tax owed.
- **Dividend recipient:** You receive dividends not taxed at source; you’ll get a Simple Assessment instead of doing a Self Assessment return if that’s all your untaxed income.
## Actionable Advice
- Make sure your **Personal Tax Account** is set up and contact details current so HMRC letters reach you.
- Keep good records of bank interest, dividends, or any income outside PAYE.
- If you receive a letter, act before 31 January 2027 to avoid penalties.
## Why It Matters
Simple Assessments streamline HMRC’s job and reduce the burden on taxpayers who'd otherwise have to submit a full Self Assessment. But for those affected, the tighter process means staying organised and responsive can save you from unexpected liability and stress.
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**Category:** Compliance
**TaxHome:** UK
**Author:** NomadicTax Research Team
**ReadTime:** 5-8 min
**Published:** true