Simple Assessment is designed to simplify the tax system for hundreds of thousands of customers, providing them with a straightforward way of paying any tax they owe. During the next few months, 1.4 million Simple Assessment letters (PA302) will be sent to customers who have tax to pay on their income for the 2024 to 25 tax year.
Nearly a third of the letters will be sent to people over the age of 65. With these customers in mind, HM Revenue and Customs’ Chief Customer Officer Myrtle Lloyd outlines why you could receive one if you’re a pensioner, what you should do and where you can access extra help if you need to.
What is Simple Assessment?
Simple Assessment simplifies the tax system for customers with relatively straightforward tax affairs. It provides customers with a way of paying tax owed on income above their annual personal allowance, which is usually £12,570. Simple Assessment letters (known as PA302) are sent if customers income exceeds their personal allowance and the unpaid tax cannot be collected automatically through Pay As You Earn (PAYE). Being able to pay tax directly through Simple Assessment also means they don’t have to register for Self Assessment to pay the tax they owe.
Why have I received one?
Your Simple Assessment letter provides you with an assessment of any tax you owe and how it was calculated. It shows in detail where any additional income has come from. Income may come from a number of sources including savings, a second job, paying too little tax as well as income from pension.
More than 400,000 letters are being sent to customers aged 65 and above because their income is higher than their personal allowance and they owe tax on it.
Why are the letters sent?
Simple Assessment letters are automatically generated and sent to customers when HMRC receives information about a customer’s income. This information can come from a number of sources including employers, Department for Work and Pensions, from banks, building societies and financial institutions as well as from customers themselves who may provide HMRC with details about their income, for example earnings from dividends they may have received.
What should I do if I get one?
Don’t ignore it! If a letter drops on your mat – or appears in your online Personal Tax Account – you’ve been sent it for a reason. Anyone who receives a Simple Assessment letter and wants to find out more is encouraged to go online to GOV.UK, where there’s plenty of guidance to help. HMRC has produced a video and a detailed guide to help pensioners understand their Simple Assessment.
How do I know if the letter is genuine?
Simple Assessment may well provide criminals with an opportunity to attempt to commit fraud. The only way HMRC will contact Simple Assessment customers is via a letter or through their Personal Tax Account. Criminals use phishing and scam emails, phone calls and texts to try to steal information and money from taxpayers. Customers should never share personal details including their HMRC sign-in details.
We’ve produced detailed guidance to help customers recognise scams, report any issues and stay safe online.
What should I do if the assessment doesn’t look right to me?
We would encourage all customers to check the assessment in the letter and double check against their own calculations. Customers can go to GOV.UK to check the assessment against their own records and make plans to pay any tax owed.
What do I do if I believe your Simple Assessment is wrong?
If you believe the assessment is wrong, you should get in touch with us within 60 days to raise a query. More information on how to contact HMRC is available on GOV.UK. HMRC will consider the query and let you know our decision in writing. We will either confirm, amend or withdraw the Simple Assessment. If HMRC confirm it and you still believe the assessment is wrong, you can go to GOV.UK to appeal within 30 days of the date of the query decision letter.
When do I need to pay?
The payment deadline is 31 January 2026, unless customers are given an alternative date in their letter. Simple Assessment payments can be made in full, or in instalments, before the deadline.
How do I pay?
The quickest way to pay is by using the secure HMRC app or through your Personal Tax Account. Payments can also be taken via GOV.UK, by bank transfer, by cheque or over the telephone using the contact number in your letter. A full list of payment methods can be found on GOV.UK.