Simple Assessment letter (PA302): what it means and how to pay

A Simple Assessment letter, also called a PA302, is a tax bill from HMRC. It is sent when you owe Income Tax for a past tax year that could not be collected through your tax code, and you do not file a Self Assessment return. Check the figures, query any mistakes within 60 days, and pay by the deadline on the letter.

What is a Simple Assessment?

A Simple Assessment is HMRC’s way of collecting tax from people with fairly simple affairs without asking them to file a tax return. HMRC works out the tax from information it already holds, such as pension, employer and bank data, and sends you the result.

HMRC’s guide for pensioners says most letters go out in July and August after the tax year ends, but they can arrive at any time. The letter comes by post or appears in your personal tax account.

Why did HMRC send me a PA302?

You get a PA302 because HMRC thinks you owe tax it could not take through PAYE. GOV.UK lists these common reasons:

• you owe Income Tax that your tax code could not cover
• you owe HMRC £3,000 or more
• you need to pay tax on your State Pension
• you have untaxed income, such as savings interest or dividends

If you are registered for Self Assessment, you will not get a Simple Assessment. Your return covers the tax instead. Employees who overpaid or underpaid usually get a P800 instead; see our guide to the P800 letter.

What does the letter show?

The PA302 shows how much tax you owe for the year, how HMRC worked it out, and how to pay. HMRC’s State Pension figure covers the full 52 weeks of the tax year.

If HMRC gets new information, it may send a revised bill for the same year. The latest bill shows the total owed for the whole year, including earlier bills. You only pay the difference from what you have already paid.

When do I have to pay?

The deadline depends on the date of your letter. These are the dates on GOV.UK, checked on 6 November 2026.

You can pay in one go or in smaller amounts, but the full amount must reach HMRC by the deadline. You must still pay by the deadline while a query is being looked at, unless HMRC tells you in writing that it will delay the date.

How to check your Simple Assessment

Check every figure against your own records before you pay. GOV.UK suggests these documents:

• your P60 or P45
• bank and building society statements showing interest
• benefit award letters
• pension statements and your State Pension award
• your Marriage Allowance details (the bill should show a £252 reduction if you receive it)

You can also use the online check your Simple Assessment service.

What if the figures are wrong?

If any amount is wrong, contact HMRC within 60 days of the date on your bill.

1. Note which amounts you think are wrong.
2. Work out what they should be and which records you used.
3. Contact HMRC’s Income Tax helpline or write to HMRC within 60 days. See our HMRC telephone numbers list.
4. Send evidence if HMRC asks for it.
5. If HMRC agrees, it sends a new Simple Assessment. If not, it sends a decision letter.
6. If you disagree with the decision, appeal within 30 days of the decision letter.

If you have already paid too much, contact HMRC for a refund. Our guide to HMRC tax refund timescales explains how long it takes.

How to pay a Simple Assessment

Use the 14-character payment reference on your letter. It starts with X. A wrong reference can delay your payment or put it against a different bill.

Personal credit cards are not accepted. Online payments count on the day you make them, including weekends and bank holidays. If you cannot pay in full, see HMRC Time to Pay and contact HMRC before the deadline.

What happens if I pay late?

The GOV.UK Simple Assessment pages we checked do not set out late payment penalties. HMRC charges late payment interest on unpaid tax; its rate is 7.75% and rises to 8% from 24 November 2026, according to HMRC’s page updated 6 November 2026. See HMRC late payment interest. Ask HMRC what applies to your bill if you think you will miss the deadline.

Pensioners and the State Pension from April 2027

Many PA302s go to pensioners whose State Pension takes them just over the £12,570 Personal Allowance. HM Treasury published a Pension Tax Allowance explainer on 28 October 2026. From April 2027, people over State Pension age with total income up to £13,036.40 get a tax reduction worth up to about £94.

If it removes all the tax due, no Simple Assessment is issued for that year. The allowance tapers away between £13,037 and £13,319 in 2027/28. It does not cancel bills for years before 2027/28, which must still be paid. Our guide to Self Assessment for pensioners covers when a return is needed instead.

Frequently asked questions

Is a Simple Assessment letter genuine?

A genuine PA302 comes by post or in your HMRC personal tax account, never by text with a link. If in doubt, sign in to your personal tax account directly rather than using any link or number in a message.

Do I need to file a tax return if I get a Simple Assessment?

No. The Simple Assessment replaces the tax return for that year. Tell HMRC within 60 days if you have untaxed income it has missed.

Can I pay a Simple Assessment in instalments?

You can make smaller payments, but the full amount must reach HMRC by the deadline on the letter. If you cannot manage that, contact HMRC about a payment plan.

How long do I have to dispute a Simple Assessment?

You have 60 days from the date on the bill to contact HMRC. If HMRC then rejects your query, you have 30 days from its decision letter to appeal.

Will I get a Simple Assessment on my State Pension in 2027/28?

Not if the new Pension Tax Allowance removes all the tax due. It applies automatically from April 2027 to people over State Pension age with total income up to about £13,319.