HMRC to issue 1.8 million Simple Assessment letters for 2025/26
HMRC is issuing around 1.8 million Simple Assessment letters for the 2025/26 tax year, with a further batch expected between October and December 2026.If you receive a letter, it’s important to check the information HMRC has used to calculate your tax and understand when any amount due needs to be paid.
What is a Simple Assessment?
Simple Assessment is an alternative to Self Assessment where Income Tax cannot be collected through PAYE. It is commonly used for income such as the State Pension and interest from banks and building societies.
HMRC uses the information it holds to calculate the tax due. The resulting PA302 Simple Assessment letter sets out the calculation and may be sent by post or through your Personal Tax Account.
HMRC uses the information it holds to calculate the tax due. The resulting PA302 Simple Assessment letter sets out the calculation and may be sent by post or through your Personal Tax Account.
Why are more letters being sent?
The number of Simple Assessment letters issued by HMRC has increased significantly in recent years. HMRC expects to issue around 1.8 million for 2025/26, compared with around 675,000 in 2021/22, an increase of around 167% in just four years.
ICAEW notes that the increase is due in part to the continued freeze of the Income Tax Personal Allowance at £12,570.
HMRC began sending the first 2025/26 letters to working-age taxpayers in July and began writing to pensioners from 12 August. A further batch, relating to bank and building society interest information, is expected between October and December 2026.
It is also possible to receive more than one Simple Assessment letter for the same tax year.
ICAEW notes that the increase is due in part to the continued freeze of the Income Tax Personal Allowance at £12,570.
HMRC began sending the first 2025/26 letters to working-age taxpayers in July and began writing to pensioners from 12 August. A further batch, relating to bank and building society interest information, is expected between October and December 2026.
It is also possible to receive more than one Simple Assessment letter for the same tax year.
What should you do if you receive a letter?
The most important step is to check the calculation carefully against your own records.
If you have any queries or believe the letter contains an error, you should contact HMRC. This is particularly important where HMRC has used estimated figures, as these may need to be replaced with accurate information.
If you are already within Self Assessment, you should also check whether the Simple Assessment applies to you. Where appropriate, you or your tax adviser can contact HMRC to request that it is withdrawn.
If you have any queries or believe the letter contains an error, you should contact HMRC. This is particularly important where HMRC has used estimated figures, as these may need to be replaced with accurate information.
If you are already within Self Assessment, you should also check whether the Simple Assessment applies to you. Where appropriate, you or your tax adviser can contact HMRC to request that it is withdrawn.
When does the tax need to be paid?
For 2025/26, the payment deadline is 31 January 2027, unless a different date is stated on your Simple Assessment letter.
If you think you may have difficulty paying the amount in full by the deadline, HMRC may be able to agree a Time to Pay arrangement.
If you think you may have difficulty paying the amount in full by the deadline, HMRC may be able to agree a Time to Pay arrangement.
How we can help
If you’ve received a Simple Assessment letter and aren’t sure what it means for you, our Personal Tax team can help you understand your position.
We can review the information used in the calculation, help identify whether anything needs to be queried with HMRC and advise you if your circumstances mean that Self Assessment may be more appropriate.
We can review the information used in the calculation, help identify whether anything needs to be queried with HMRC and advise you if your circumstances mean that Self Assessment may be more appropriate.
