Simple Assessment UK 2026/27 — PA302 Letter and Payment Guide

If HMRC sends you a Simple Assessment letter, it is telling you that it has calculated tax which it cannot collect automatically through PAYE or Self Assessment. The letter is commonly called a PA302 and explains the income included, the tax calculation and the amount to pay.

For the 2025/26 tax year, HMRC says many customers will need to pay by 31 January 2027, unless the letter gives another deadline. You do not normally submit a tax return just because you receive a Simple Assessment letter. First check the figures against your own records; if something is wrong, contact HMRC within 60 days.

Use the Salary Calculator→ to understand an indicative PAYE position only. It cannot reproduce HMRC’s Simple Assessment calculation or replace the PA302 letter.

What is Simple Assessment?

Simple Assessment is an HMRC process for collecting Income Tax from some people who have tax to pay but do not need to complete a Self Assessment return for that liability. HMRC uses information supplied by employers, pension providers, the Department for Work and Pensions and financial institutions to prepare the calculation.

The letter can cover tax on:

• savings interest or dividends;
• a second income that was not collected through PAYE;
• pension income;
• a benefit or allowance that was higher than the person was entitled to; or
• an amount too large to collect through a tax code, often around £3,000 or more.

These are examples, not an exhaustive eligibility test. The PA302 explains the specific reason HMRC issued it.

Simple Assessment is not Self Assessment

The two processes are different:

You may still need to register for Self Assessment for another reason. For example, a new sole trader, landlord or person with a different untaxed-income obligation should use HMRC’s Self Assessment checker rather than assuming Simple Assessment covers everything.

How to check a PA302 calculation

Compare every material figure in the letter with your records:

1. check the tax year and your name or reference;
2. compare employment, pension and State Pension figures with P60s, pension statements and HMRC records;
3. check savings interest and dividends against bank, building-society and investment statements;
4. check benefits, allowances and any tax already deducted;
5. review the personal allowance and tax-band calculation; and
6. compare the amount due and deadline with the payment instructions.

Do not assume that a figure is correct because it came from a bank or pension provider. HMRC’s letter is a calculation based on information it received, and you remain responsible for reporting an error or a missing source of income through the correct channel.

What if the calculation is wrong?

Contact HMRC as soon as possible and within the period stated in the guidance. GOV.UK says you should contact HMRC within 60 days if information in the Simple Assessment calculation is wrong. Explain the specific item, give the corrected amount and keep evidence of the contact and documents supplied.

Examples of issues to query include:

• income belonging to a different tax year;
• duplicate pension or employment income;
• savings interest or dividends that are not yours;
• tax already deducted but omitted from the calculation;
• a missing allowance or incorrect personal details; or
• a tax liability that should be dealt with through Self Assessment instead.

Do not send sensitive information through an unverified email or a link in an unexpected message. Use the contact route on GOV.UK or the official HMRC account.

When must you pay?

The deadline depends on when the letter was issued. For a 2025/26 Simple Assessment letter issued before 31 October 2026, HMRC’s current guidance says the amount is generally due by 31 January 2027. For a letter issued on or after 31 October 2026 covering 2025/26 or an earlier year, the current GOV.UK payment guidance says the amount is due within three months of the letter date.

The letter remains the controlling document. If you choose instalments, the full amount must still be paid by the deadline unless HMRC agrees another arrangement. Paying in instalments before the deadline is not the same as a formal time-to-pay agreement after the deadline.

How to pay safely

HMRC lists online payment, bank transfer and cheque among the payment methods. Use the 14-character payment reference beginning with X from the Simple Assessment letter so the payment is allocated to the correct tax bill.

Before paying:

• check the letter through your Personal Tax Account where available;
• verify suspicious correspondence using HMRC’s official letter-checking service;
• use GOV.UK or the HMRC app rather than an unexpected payment link; and
• keep the payment confirmation and reference.

If you cannot pay in full, contact HMRC promptly. Do not ignore the bill, as interest or penalties can apply when payment is late.

A practical checklist

1. Confirm the letter is genuine and identify the tax year.
2. Compare every income and tax figure with your own records.
3. Contact HMRC within 60 days if a material figure is wrong.
4. Check whether another income source means you need Self Assessment.
5. Pay using the exact reference and by the printed deadline.
6. Save the letter, corrected calculation, payment confirmation and correspondence.

Separate the letter, the calculation and the payment

Treat three things as separate records: the PA302 notice, the tax calculation behind it and the payment allocated to the bill. The notice tells you what HMRC expects and when; the calculation explains how income, allowances and tax already paid were used; the payment confirmation proves that money was sent with the correct reference. A bank statement alone does not prove that HMRC allocated the payment to the correct year or tax account.

Make a simple reconciliation with one line for every income source shown on the letter. Add the document that supports each line, such as a P60, pension statement, State Pension record, bank certificate or dividend statement. Then list the tax already deducted and compare it with the PAYE or pension records. If a line is missing, duplicated or assigned to the wrong year, describe that exact discrepancy when contacting HMRC rather than disputing the total without evidence.

The calculation can also be affected by personal details, allowances and the tax year. A change in address, marital status, pension source or employment can make a previous estimate unreliable. Do not copy figures from a later notice into an earlier PA302. Keep each year's notice and supporting documents together.

What happens after you query the PA302?

HMRC may revise the calculation, ask for evidence or confirm that the original figure is correct. Keep the date of the query, the contact route, the reference and all documents sent. If HMRC issues a replacement calculation, compare it with the original and check whether the payment amount or deadline has changed. Do not pay the original and revised amount together without checking the balance.

If you have already paid and the revised calculation reduces the bill, ask HMRC how the credit or refund will be handled. If the revision increases the bill, check the new deadline and payment reference. A corrected PA302 is not automatically a Self Assessment amendment, and a Self Assessment return is not a substitute for resolving a Simple Assessment notice unless HMRC directs you to use that route.

When a PA302 is not the right route

Simple Assessment may cover one calculated liability while another obligation exists outside the letter. Examples include starting self-employment, becoming a landlord with a filing obligation, receiving complex foreign income, disposing of assets, or being told by HMRC to file a tax return. Check the full income picture and the tax year. Do not assume that paying a PA302 means every untaxed income source has been reported.

Likewise, a PAYE code change can be a separate collection method. HMRC may collect a future amount through a code, issue a Simple Assessment for another amount or revise both after receiving new information. Compare the PA302 with the latest tax-code notice and payslip, but do not cancel a payment solely because the code has changed. Ask HMRC which liability each collection method relates to.

Protect against payment fraud

Simple Assessment letters are attractive targets for payment scams because they contain a believable tax amount and deadline. Use GOV.UK or the Personal Tax Account to confirm the notice, and type the official website address rather than following an unexpected link. Check the payee details and the 14-character reference beginning with X. HMRC will not need your banking password or ask you to move money to a “safe account”.

If you think you used a fraudulent payment route, contact your bank immediately and use the official HMRC fraud or contact route. Keep the suspicious message, envelope, phone number and payment details as evidence. A genuine PA302 still requires action, but the action should be taken through the official account or GOV.UK service.

Keep records after the bill is paid

Save the PA302, any revised calculation, the evidence used to check it, the payment confirmation and HMRC correspondence. Keep the documents for the period relevant to the tax matter and follow the current HMRC record-keeping guidance. If the same income appears on a later tax return, retain enough evidence to explain why the PA302 was paid and whether credit was given.

At the end of the process, confirm that the balance shows as paid or that an agreed arrangement is active. Do not rely only on a payment reference typed into a bank form. The account status, confirmation and correspondence together provide stronger evidence. This is particularly important where a payment is made close to the deadline, from a joint account or on behalf of another taxpayer.

Frequently Asked Questions

For related filing decisions, read the Self Assessment Registration guide, the Self Assessment Deadlines guide and the State Pension Simple Assessment guide.

Official sources

• HMRC — Simple Assessment letters 2026 — current letter and payment context.
• GOV.UK — Pay your Simple Assessment tax bill — payment methods and deadlines.
• GOV.UK — Check if an HMRC letter is genuine — letter verification and fraud checks.
• GOV.UK — Download the HMRC app — official account and app access.

This guide is general educational information for UK Simple Assessment and PA302 notices in the 2026/27 payment cycle. The individual letter, HMRC records, revised calculation and official payment instructions control the outcome. It is not a tax calculation, filing confirmation or personal advice.