Simple Assessment

Don’t ignore the letter

HMRC has started sending 2025/26 Simple Assessment letters to pensioners from 12 August 2026. If you receive one, it is important to check the figures carefully rather than assume that HMRC’s calculation must be correct.

HMRC expects to issue around 1.8 million Simple Assessment letters overall. They are used where someone owes Income Tax that cannot be collected automatically through PAYE and they are not otherwise required to complete a Self-Assessment tax return.

Why might you receive one?

A Simple Assessment can arise for several reasons. For pensioners, it may be because the State Pension and other taxable income together exceed the available Personal Allowance.

State Pension is taxable, although tax is not normally deducted from the pension itself. Where it is the only source of income and the amount exceeds the Personal Allowance, HMRC may therefore issue a Simple Assessment showing the tax payable.

Other income may also be included, such as private pensions, employment income, savings interest or dividends.

HMRC prepares the calculation using information it receives from sources including employers, pension providers and financial institutions. This makes the process easier for taxpayers, but it does not guarantee that every figure is correct.

Check the calculation

If you receive a Simple Assessment letter, compare the figures with your own records.

In particular, check:

• State Pension and private pension income;

• tax already deducted under PAYE;

• bank and building society interest;

• dividend and other investment income; and

• allowances and reliefs to which you may be entitled

HMRC itself advises recipients to check the figures against their records.

If something appears incorrect, do not simply pay the amount shown and assume that the matter is settled. The calculation should be queried with HMRC and corrected where necessary.

When must the tax be paid?

In most cases, tax due under a 2025/26 Simple Assessment will need to be paid by 31 January 2027, although the actual deadline shown on the letter should always be checked. HMRC also allows taxpayers to make payments towards the bill before the deadline rather than paying the whole amount at once.

A Simple Assessment does not normally mean that you suddenly need to register for Self-Assessment and complete a tax return. Its purpose is to collect a relatively straightforward tax liability without requiring a return.

Ask for help if you are unsure

If you receive a Simple Assessment unexpectedly, or the figures do not agree with your records, speak to us before making payment.

We can check HMRC’s calculation, establish whether all income and allowances have been dealt with correctly and advise you on what action is required.

The important point is not to ignore the letter. Check it promptly and make sure that any tax shown as payable is genuinely due before the payment deadline.