Received an Unexpected HMRC Tax Bill? Don't Ignore It
HMRC is sending approximately 1.8 million Simple Assessment letters relating to the 2025/26 tax year.
If you've received a letter labelled PA302 showing that you owe tax, it is important not to assume it is a mistake or simply leave it until your next tax return.
What is a Simple Assessment?
A Simple Assessment allows HMRC to calculate tax that you owe without requiring you to submit a Self Assessment tax return solely for that liability.
HMRC may issue one when it has information showing that additional tax is due but the amount cannot be collected automatically.
Common reasons include:
tax due on savings interest;
dividend income;
untaxed second income;
pension income;
receiving more tax-free allowance than you were entitled to; or
tax that cannot be collected through your PAYE tax code.
Why are people receiving these letters?
HMRC receives information from a range of sources including employers, financial institutions and the Department for Work and Pensions.
This information can reveal income on which insufficient tax has been collected.
HMRC then calculates the additional tax and issues a PA302 Simple Assessment.
Don't automatically assume HMRC's calculation is correct
Receiving an HMRC calculation does not mean you shouldn't check it.
Compare the income and tax figures shown on the letter against your own records.
Check particularly carefully for duplicated income, incorrect employment details, incorrect savings interest, incorrect pension information or other income that does not belong to you.
What if the calculation is wrong?
This is particularly important:
If you believe information on your Simple Assessment is incorrect, HMRC says you should contact them within 60 days.
Don't wait until the payment deadline before checking the calculation.
When does the tax need to be paid?
For a Simple Assessment relating to 6 April 2025 to 5 April 2026 received before 31 October 2026, the normal payment deadline is:
31 January 2027
If the letter is received on or after 31 October 2026 for 2025/26 or an earlier tax year, the payment deadline is generally three months from the date of the letter.
Always check the deadline shown on your own HMRC letter.
Can you make smaller payments?
Yes.
HMRC allows you to make a series of smaller payments before the deadline, provided the full amount is paid by the required date.
If you cannot afford to pay the tax on time, don't simply ignore the bill. Contact HMRC as early as possible to discuss the options available.
Be careful of scams
A genuine Simple Assessment can arrive by post or appear in your Personal Tax Account.
Because unexpected HMRC tax bills can also be used as an opportunity by scammers, never send money to bank details supplied in a suspicious email, text message or WhatsApp message.
Verify the assessment through your official HMRC account or GOV.UK.
Need help checking your HMRC calculation?
C&V Accounting can review your Simple Assessment against your tax records and help you understand:
why HMRC says tax is due;
whether the income figures appear correct;
the payment deadline;
whether further action may be required; and
what to do if you believe the calculation is incorrect.
Received a PA302 or unexpected HMRC tax bill? Contact C&V Accounting before ignoring or paying something you don't understand.
Official HMRC guidance:
HMRC – Simple Assessment
This article is for general information only and does not constitute individual tax or financial advice.
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