HMRC issues Simple Assessment payment warning for 2025 to 2026 tax year

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HMRC Simple Assessment warning

Highlights

HMRC will issue PA302 Simple Assessment letters for the 2025 to 2026 tax year to taxpayers owing £3,000 or more outside PAYE or Self Assessment.
Taxpayers must pay the assessed amount in full or in instalments by the specified deadline, using the HMRC app, GOV.UK, bank transfer, or cheque without filing a tax return.
HMRC is increasing compliance focus on non-PAYE income streams, supporting taxpayers with online guidance, verification tools, and pensioner-specific resources.

Letter rollout and payment deadline

As reported by GOV.UK, citing HM Revenue & Customs, the department will send Simple Assessment letters for the 2025 to 2026 tax year to people with tax liabilities that cannot be collected automatically through PAYE or Self Assessment.

These letters, officially known as PA302, explain how much tax is owed and why. They can be issued where tax is due on savings interest or dividends, where a second income has not been taxed, where pension income creates a liability, where someone has received more tax-free allowance than they were entitled to, or where the amount owed cannot be collected through a tax code, typically for sums of £3,000 or more.

Myrtle Lloyd, HMRC's Chief Customer Officer, says customers should not ignore the letters and can pay quickly through the HMRC app. HMRC says payments can also be made online through GOV.UK, by bank transfer or by cheque, and taxpayers can choose to pay in full or in instalments before the deadline without filing a tax return.

Support tools and implications for taxpayers

Recipients are being told to compare the figures in their letter with their own records and to check that any correspondence is genuine. HMRC says official notices arrive by post or appear in a customer's Personal Tax Account online, and verification guidance is available on GOV.UK.

The campaign highlights HMRC's wider effort to improve compliance on income streams that sit outside standard payroll deductions. Detailed Simple Assessment guidance, including support for pensioners, is available on GOV.UK, while HMRC's Tax Confident website offers additional resources aimed at helping people understand their tax obligations.

The debate over UK property taxation has intensified, with some northern Labour MPs renewing calls to scrap council tax and arguing it is regressive for less affluent areas. Our earlier article explained why the government is resisting near-term replacement plans, while the discussion continues around alternatives such as a broader property levy and changes to how local government is funded across regions.

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