Glossary · UK
What is Simple Assessment?
An HMRC process that calculates tax owed automatically and sends a bill, removing the need to file a full Self Assessment return.
Full Definition
Simple Assessment is a method HMRC uses to collect Income Tax from people whose tax cannot be fully taken through PAYE, but who do not need to complete a Self Assessment return. Instead of you working out the figures, HMRC uses information it already holds -- such as pension, savings interest or State Pension data -- to calculate what you owe and issues a tax calculation letter (a PA302). Common recipients include pensioners whose State Pension exceeds the Personal Allowance (GBP 12,570 for 2026/27) and those with untaxed savings income. You should check the calculation carefully against your own records, because HMRC's data can be incomplete or out of date. If you disagree, you have 60 days to query it. Payment is usually due by 31 January following the tax year, or three months after the letter if later. It matters because it shifts the calculation burden to HMRC while still leaving you responsible for paying the correct amount on time.