Tax Planning
Understanding Simple Assessment Letters: What UK Taxpayers Need to Know
HMRC has started sending out Simple Assessment (PA302) letters for 2025-2026 to address tax owed that cannot be collected via PAYE or Self Assessment—these letters require action but not a full tax return.
By NomadicTax Research Team • 5-8 min read • August 17, 2026
## What Is a Simple Assessment (PA302)?
A Simple Assessment letter from HMRC—officially called **PA302**—is issued when there is tax due that HMRC cannot collect automatically through Pay As You Earn (PAYE) or via a Self Assessment return. Common triggers include:
- extra income such as pension or bank interest that was untaxed or under-taxed
- a second job without correct tax coding
- claiming too much tax-free allowance in one year ([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai))
**Important points**:
- You **do not** need to file a full Self Assessment return solely because you receive a Simple Assessment.
- The letter will show how much you owe, why, and provide a payment deadline. ([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai))
## Recent HMRC Guidance (2026)
- HMRC issues **Simple Assessment letters** for the 2025-26 year in summer 2026. Pensioners will receive theirs from **12 August 2026**. ([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai))
- Around **1.8 million** such letters will be sent. ([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai))
- Standard payment deadline is **31 January 2027**, unless your letter states a different date. ([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai))
- If the letter is issued **on or after 31 October 2026**, you must pay within **3 months** from the letter date. ([gov.uk](https://www.gov.uk/simple-assessment?utm_source=openai))
## What You Should Do
- **Check the letter carefully**: confirm that income amounts match your records.
- Pay by 31 January 2027 (or within 3 months if specified). Methods include HMRC app, bank transfer, cheque. ([gov.uk](https://www.gov.uk/government/news/hmrc-urges-customers-not-to-ignore-simple-assessment-letters?utm_source=openai))
- If you disagree with the calculation or believe there's an error, contact HMRC within the time provided.
- Keep evidence: pension slips, interest statements, dividend income to verify accuracy.
## Examples
- Sarah receives a Simple Assessment letter in July 2026 showing unpaid tax on her State Pension. She can pay by **31 January 2027**, or if her letter indicates otherwise, follow the 3-month rule once issued after 31 October.
- Tom receives his letter in November 2026 about bank interest. He has until **3 months** from his letter’s date to pay, which may be in February 2027 if issued in November.
## Implications & Advice
Simple Assessment aims to **simplify compliance** and avoid unnecessary Self Assessment returns. But ignored letters can lead to penalties or interest.
**Tip**: Those with multiple income sources (e.g. pension + savings) should check their tax codes or adjust tax code via Personal Tax Account to avoid or reduce future Simple Assessment exposure.
Key takeaway: A Simple Assessment letter needs action — check, pay, or appeal — but not a full Self Assessment unless other criteria apply.