HMRC is set to dispatch a new wave of income tax letters to some UK households from October, with the correspondence also reaching certain state pensioners. The letters form part of the Simple Assessment process, used when tax owed cannot be recovered through the tax code.
Around 1.8 million Simple Assessments are due to be issued in total this year. While many have already been sent, a second tranche of letters will arrive between October and December 2026, relating to Bank and Building Society Interest (BBSI) data.
Who receives a Simple Assessment letter
A Simple Assessment may be issued if you are liable for Income Tax that cannot be recovered through your tax code. It can also apply if you owe £3,000 or more in tax, are required to pay tax on your State Pension, or have untaxed income such as savings interest or dividends.
HMRC has confirmed that certain savers will receive a second tax demand from next month that incorporates tax owed on savings interest, alongside the sum specified in the first letter, even if this tax has already been settled.
How to avoid paying twice
HMRC is advising people to subtract any tax already paid from the second figure to work out the genuine amount outstanding. The initial letters noted that a further letter might arrive.
An HMRC spokesman said: "To prevent customers from overpaying, our letters now make clear that customers don't need to pay the total tax shown if they've already made a payment towards a previous simple assessment bill from earlier in the year."
Official Government guidance states that HMRC issues a Simple Assessment tax bill (also known as a PA302) if you have not paid enough tax and they are unable to collect it through your tax code. Tax officials say you will receive notification by post or in your Personal Tax Account, setting out how much tax is owed, how it was calculated and the payment options.
Payment options and support
Simple Assessment is different from submitting a Self Assessment tax return. HMRC's publicity campaign this summer informed 1.8 million people that they would be receiving Simple Assessment letters.
At the time, 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."
Payments can be made using the free and secure HMRC app, online via GOV.UK, by bank transfer or by cheque. Guidance on Simple Assessment, including a dedicated section for pensioners, is available on GOV.UK. If you have made an overpayment, you will need to contact HMRC to claim a refund.
