Simple Assessment

Why would I get a Simple Assessment letter?

You may get a Simple Assessment letter if you:

• need to pay Income Tax that isn’t automatically taken out of your income. For example, if you have been on the wrong tax code, owe tax on bank and/or building society interest or your State Pension.
• get a letter if you owe HMRC £3,000 or more.

What do I do when I get a Simple Assessment letter?

HMRC will send you a Simple Assessment letter (a PA302) which tells you exactly what you need to do. It tells you:

• how much tax you owe.
• when it needs to be paid (usually by the following 31 January or three months after the date of the letter).
• how to pay it, including what to do if you disagree with the assessment.

The letter will usually include why HMRC think you have paid too little tax.

How can I pay?

You can pay:

• online or via the HMRC app
• by bank transfer
• by cheque

Find out more about different ways to pay.

When do I have to pay by?

If the Simple Assessment letter is sent before 31 October 2025 (for the 6 April 2024 to 5 April 2025 tax year) you must pay what you owe by 31 January 2026.

If the letter is sent on or after 31 October 2025 (for the 6 April 2024 to 5 April 2025 or any earlier tax year) you must pay what you owe within three months of the date of the letter.

What if I can’t pay my tax bill on time?

There are ways to help you if you can’t pay your bill within the deadline. Find more information about help paying your tax bill and contact HMRC as soon as possible.

What if I think my Simple Assessment is wrong?

If you think your Simple Assessment is wrong, you have 60 days from the date on your letter to query it with HMRC.

You can do this by calling them on 0300 200 3300 or writing to them at: PAYE and Self Assessment, HMRC, BX9 1AS.

HMRC will review your assessment and send you a letter explaining their decision. They will tell you in the letter if the Simple Assessment will be changed, withdrawn or kept the same.

What if I’m in Self Assessment?

If you are registered for Self Assessment and receive a Simple Assessment letter, you need to call HMRC on 0300 200 3300 to have the Simple Assessment withdrawn.

What if I owe tax from bank and/or building society interest?

If you owe tax from bank and/or building society interest, you might receive two Simple Assessment letters in the same tax year.<br />The second letter will include the total tax you owe for the year. This total will include the amount that was set out in your first letter, even if you have paid that back to HMRC. If you have already paid the first amount back, you will owe the amount that’s in the second letter minus what you have already paid.

You should tell HMRC if you have other income for the year that is not shown on the Simple Assessment calculation, such as dividends.

Where can I find more information?

You can find more information about Simple Assessment on HMRC’s website.