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)
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)
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)
- Around 1.8 million such letters will be sent. (gov.uk)
- Standard payment deadline is 31 January 2027, unless your letter states a different date. (gov.uk)
- If the letter is issued on or after 31 October 2026, you must pay within 3 months from the letter date. (gov.uk)
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)
- 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.