HM Revenue and Customs (HMRC) is warning pensioners to watch for a tax letter arriving this week. Around 1.8 million Simple Assessment letters are being issued for the 2025/26 tax year, with pensioners receiving theirs from Wednesday, August 12.
What are Simple Assessment letters?
The letters, officially known as PA302, tell recipients how much tax HMRC believes they owe and why. They are sent when tax is owed on income not collected through Pay As You Earn (PAYE) or Self Assessment. This can include tax on pension income, savings interest, or dividends, or where someone has a second untaxed income or received more tax-free allowance than entitled.
HMRC can also use Simple Assessment where money owed cannot be collected through a tax code, typically for amounts of £3,000 or more.
Key dates and figures
Working-age customers began receiving letters from June 30, but pensioners' letters start August 12. A further batch will be issued between October and December relating to bank and building society interest data. Payment is generally due by January 31, 2027, unless a different deadline is shown.
What to do if you receive a letter
Recipients should check HMRC's figures against their own records. Payments can be made in full or through instalments via the HMRC app, online through GOV.UK, by bank transfer, or by cheque. Receiving a Simple Assessment does not mean you need to complete a Self Assessment tax return.
Myrtle Lloyd, HMRC's Chief Customer Officer, said: “If you receive a Simple Assessment letter and have tax to pay, please don't ignore it. It is quick and easy to pay any tax owed via the HMRC app. If you need extra support, or want to find out more, search ‘Simple Assessment’ on GOV.UK.”
Checking if a letter is genuine
Simple Assessment letters are official HMRC communications, arriving by post or appearing in a Personal Tax Account online. Anyone concerned about fraud can use the official GOV.UK service to check if correspondence is genuine.
HMRC says PA302 letters are automatically generated after receiving information from employers, the Department for Work and Pensions, and financial institutions. People who believe the calculation is incorrect should not ignore the letter but check the figures and contact HMRC. A full guide is available on GOV.UK.
