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)
Key Changes for 2026/27
- HMRC is sending out Simple Assessment letters for the 2025–26 tax year during summer 2026.(gov.uk)
- 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)
- The payment deadline is 31 January 2027, unless another date is shown on the assessment. Instalment options may be available.(gov.uk)
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)
- Your tax liability arises outside of Self Assessment and cannot be collected through PAYE.
What To Do If You Get One
- Don’t ignore it. Verify the figures in the PA302 letter against your records. HMRC urges prompt attention.(gov.uk)
- Pay by the deadline, or set up instalments if you're eligible.
- Keep Proof: Retain evidence of any payments.
- 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.
Category: Compliance TaxHome: UK Author: NomadicTax Research Team ReadTime: 5-8 min Published: true