HMRC Simple Assessment Letters: What You Need to Know
If you’ve received a letter from HMRC recently, don’t ignore it. HMRC has begun its annual campaign reminding taxpayers to check their Simple Assessment letters, with notices for the 2025/26 tax year now arriving.
At The Hollies Bookkeeping Services in Pontesbury, Shropshire, we know that tax letters from HMRC can sometimes be confusing, particularly when they arrive unexpectedly. Here’s what you need to know about Simple Assessment and what to do if you receive a letter.
What is Simple Assessment?
Simple Assessment is a way for HMRC to collect Income Tax that hasn’t been, or can’t be, collected through PAYE.
You may receive a Simple Assessment if you have Income Tax to pay on income such as:
Interest from savings or dividends
A second source of income
State Pension income
Income that cannot be collected through your tax code, typically where the amount due is £3,000 or more
You could also receive a Simple Assessment if you have received more personal allowance than you were entitled to. This can happen in certain circumstances involving an additional pay period, such as a Week 53, 54 or 56.
Look out for a PA302 letter
For the 2025/26 tax year, HMRC is issuing PA302 Simple Assessment letters. These letters explain how much Income Tax HMRC believes you owe and provide details of how and when to pay it.
The payment deadline for tax due under a 2025/26 Simple Assessment is 31 January 2027.
It’s important not to put the letter to one side or assume that HMRC will automatically collect the amount through your PAYE tax code. If you receive a PA302, check the figures carefully and make sure any tax due is paid by the deadline.
PA302 or P800 – what’s the difference?
If you are not registered for Self Assessment, HMRC may send you one of two types of letter when there has been a difference in the amount of Income Tax you have paid:
PA302 – Simple Assessment
This generally means HMRC believes you have tax to pay.
P800 – Tax Calculation
This may show that you have overpaid tax and are due a refund.
The distinction is important. If HMRC says you owe tax, the amount needs to be paid. If a P800 shows that you are due a refund, you will generally need to claim the repayment rather than simply waiting for it to arrive.
What should you do if you receive a letter?
Our advice is simple: don’t ignore it.
Check the information on the letter carefully, including the income and tax figures HMRC has used. If something doesn’t look right, it’s worth getting advice before making a payment.
Director of The Hollies Bookkeeping Services, Julie Williams, says:
“HMRC letters can be daunting, particularly when you’re not expecting to receive one. The important thing is not to panic and, equally, not to put the letter in a drawer and forget about it. Take a look at the figures, check that the information is correct and get professional advice if you’re unsure. Dealing with it promptly can help avoid unnecessary stress and potential penalties.”
At The Hollies Bookkeeping Services, we’re always happy to help clients understand what an HMRC letter means and what action may be needed.
If you’ve received a PA302 Simple Assessment letter and you’re unsure whether the figures are correct or what you need to do next, get in touch with our team in Pontesbury, Shropshire. We can help you make sense of the numbers and ensure you know what needs to be done.
Don’t ignore that HMRC envelope – a quick check now could save you a lot of worry later.
Please contact The Hollies Bookkeeping Services by phone on 01743 790086, email at info@holliesbookkeeping.co.uk, or visit www.holliesbookkeeping.co.uk.