What is an HMRC Simple Assessment and how do I pay it?

Full answer

Simple Assessment is HMRC's way of collecting tax from people who owe a relatively straightforward amount but do not need the full Self Assessment system. Instead of you completing a return, HMRC uses information it already holds - from employers, pension providers, banks and the DWP - to work out the tax due and sends you a calculation (a PA302 letter or an online notice). It is commonly used when: your State Pension exceeds your Personal Allowance (GBP 12,570 in 2026/27, frozen to April 2028); you have savings interest above your Personal Savings Allowance that cannot be coded out; or you owe tax that is too large to collect through your PAYE tax code in the following year. What to do: read the calculation carefully and check each figure against your own records - P60s, pension statements, and bank interest certificates. If you agree, pay by the deadline shown (usually 31 January after the tax year, or three months from the date of the notice if later). If you disagree, you have 60 days to query it with HMRC; do not ignore it. Worked example: a pensioner receives the full new State Pension of about GBP 12,548 a year plus GBP 3,000 of taxable private pension and GBP 1,500 of savings interest. Some of this exceeds the Personal Allowance and savings allowances, creating a small tax bill HMRC collects by Simple Assessment rather than asking for a return. Who this affects: pensioners and people with modest untaxed income who are not in Self Assessment. 2026/27 note: with the Personal Allowance frozen and the State Pension rising to GBP 241.30 per week, more pensioners are being drawn into a small tax liability, so Simple Assessment letters are becoming more common. Use an income tax calculator to verify the figures before paying.

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