Simple assessments (PA302) will be sent where the taxpayer has tax to pay that cannot be collected via a pay as you earn (PAYE) tax code, and there are no criteria for completing a self assessment return.  

The letter (or paperless equivalent) includes a calculation of the tax due based on the information HMRC has received from third parties. This includes information from employers, pension providers, banks, building societies and other government departments, including the Department for Work and Pensions. The calculation may also include adjustments for items such as claims for employment expenses, other untaxed income such as dividends, and higher rate relief for gift aid and personal pension contributions.  

The letters explain how to make a payment and what to do if you don’t agree with the figures. The deadline for making a payment is usually 31 January (or 3 months from the date of the statement). 

Approximately 140,000 pensioners whose only income is state retirement income will receive a simple assessment because their pension income is more than the personal allowance of £12,570. HMRC has published a guide explaining simple assessment for pensioners.  

ICAEW’s view 

Caroline Miskin, Senior Technical Manager ICAEW Tax Faculty says “HMRC underplays the importance of checking simple assessments carefully. It is important to check each of the income figures back to your records and to also check for any possible omissions such as interest and dividend income. Taxpayers should also consider whether any reliefs such as claims for employment expenses or higher rate relief for gift aid and personal pension contributions are available.”  

“The calculation does not break down the interest income figure between different bank accounts making it difficult to check. HMRC sometimes includes estimates based on previous years and these figures may need to be updated. The figures must be disputed within 60 days of the date of the calculation.” 

“Those who will complete a self assessment tax return for 2023/24 should not receive a simple assessment for that year, but this sometimes goes wrong. If this happens you should ask HMRC to withdraw the simple assessment. The deadline of 5 October following the end of the tax year to notify HMRC of untaxed income applies whether or not HMRC’s self assessment criteria are met. That obligation is met if the relevant income is included in a PAYE tax calculation (P800 or simple assessment).” 

Further information: 

• TAXguide 0918: simple assessment | ICAEW
• Check your simple assessment tax bill 
• Pay your simple assessment tax bill