# HMRC Simple Assessment PA302: How to check and pay The HMRC Simple Assessment PA302 is a tax bill sent to individuals who owe tax that cannot be coded out. Discover who receives these calculations, key legal payment deadlines, how to spot common calculation errors, and how to dispute incorrect bills. **Published:** 2026-07-13 **Updated:** 2026-07-13 **Source:** https://aztajournal.com/gb/hmrc-simple-assessment-pa302 --- > The HMRC Simple Assessment PA302 is a tax bill sent to individuals who owe tax that cannot be coded out. Discover who receives these calculations, key legal payment deadlines, how to spot common calculation errors, and how to dispute incorrect bills. If you owe income tax in the UK that cannot be collected automatically, you may receive an HMRC Simple Assessment PA302 letter. This official calculation details your outstanding tax balance and tells you exactly how and when to make your payment. You must check this calculation carefully because HMRC's automated systems can make errors, and you only have a limited time to appeal. ## Key Takeaways: Understanding HMRC Simple Assessment - **What it is**: An official tax calculation (PA302) sent by HMRC to settle unpaid income tax without requiring a full Self Assessment tax return. - **Who get it**: Primarily state pensioners crossing the personal allowance threshold and PAYE employees with underpayments that cannot be coded out. - **Action required**: You must cross-reference all figures on the letter, as automated calculations frequently miscalculate pension payments and savings interest. - **Strict deadline**: You have exactly 60 days from the letter's issue date to dispute any errors under UK tax law. ## What is an HMRC Simple Assessment PA302 letter? An HMRC Simple Assessment PA302 letter is a formal tax calculation sent by HM Revenue and Customs to taxpayers who owe income tax that cannot be recovered through PAYE coding adjustments. This mechanism allows the tax authority to calculate and bill outstanding income tax directly using third-party data. The Simple Assessment framework was introduced under the Finance Act 2016 and is legally grounded in section 28H of the Taxes Management Act 1970. Under this legislation, HMRC can issue these assessments to simplify tax collection for individuals with straightforward financial affairs who do not need to file a full Self Assessment tax return. ## Who typically receives a Simple Assessment tax bill? Taxpayers who do not file Self Assessment returns but have untaxed income sources will typically receive a PA302 assessment letter from HMRC. - **State Pensioners**: Individuals whose State Pension income exceeds their Personal Allowance (£12,570) where tax cannot be deducted at source. - **PAYE Employees**: Employed individuals with tax underpayments that cannot be coded out, or those who owe £3,000 or more in income tax. - **Savings Earners**: Taxpayers whose savings interest exceeds their Personal Savings Allowance (£1,000 for basic rate and £500 for higher rate taxpayers). - **Benefit Recipients**: Individuals receiving taxable state benefits, such as Carer's Allowance, or private pension income that was not fully taxed. ## What does the PA302 calculation letter contain? The PA302 calculation letter contains a detailed breakdown of your taxable income, tax already paid, and any final balance you still owe. Specifically, the letter lists all income streams reported to HMRC by employers, pension providers, and banks. It then deducts your Personal Allowance and any tax already paid through PAYE. The final section displays the net amount of tax you owe, the official deadline for payment, and details on how to settle the balance or lodge a formal dispute. ## What are the payment deadlines for Simple Assessment? The deadline for paying your Simple Assessment bill depends on the exact date HMRC issued your PA302 letter. | Letter Issue Date | Payment Deadline | | --- | --- | | Before 31 October 2026 (for the 2025/26 tax year) | 31 January 2027 | | On or after 31 October (in any tax year) | Within 3 months of the letter date | You can pay your bill online, via bank transfer, or by sending a cheque. If you cannot afford to pay the full amount on time, you may be eligible to set up a Time to Pay payment plan online with HMRC for outstanding balances under £50,000. ## Why you must check your Simple Assessment calculation You must check the figures on your PA302 closely because HMRC's automated calculation systems often use incorrect or estimated third-party data. - **State Pension Errors**: Because the state pension is paid every four weeks, there are 13 payment dates in some tax years rather than 12. HMRC frequently uses the wrong annual figure. - **Estimated Bank Interest**: HMRC often uses historical interest estimates from previous tax years rather than your actual savings interest earned. - **Joint Accounts**: Automated systems may incorrectly attribute 100% of joint account interest to one individual instead of splitting it 50/50. - **Omitted Tax Allowances**: The system may fail to apply your starting rate for savings or your Personal Savings Allowance correctly. - **Discrepancies in PAYE**: Income figures from your employment might not match your P60, and allowable expenses like landlord costs are never automatically included. ## What should I do if my PA302 tax calculation is wrong? If you spot an error on your letter, you must dispute the assessment within 60 days of the date printed on your PA302. Under section 31AA of the Taxes Management Act 1970, you must contact HMRC to explain which figures are incorrect and what the true values should be. You can query the calculation by calling the HMRC helpline on **0300 200 3300** or by writing a letter to **PAYE and Self Assessment, HMRC, BX9 1AS**. While HMRC investigates your query, you can request that they postpone the assessment. This formal postponement means you do not have to pay the disputed tax portion until HMRC resolves the issue and issues a final decision in writing. ## Why did I receive multiple Simple Assessment letters? Receiving multiple PA302 letters usually means HMRC received updated financial information from third parties after sending your initial calculation. Banks and building societies often send savings interest data to HMRC late in the year. When this new data arrives, HMRC issues an updated PA302. You should always refer to the latest letter, as the second calculation represents the revised total due for the year. If you have already paid the amount from the first letter, simply deduct that payment from the new total and pay the difference. ### What is a simple assessment PA302 letter from HMRC? It is a formal tax calculation issued under section 28H of the Taxes Management Act 1970 for individuals who owe income tax that cannot be coded out, removing the need to complete a Self Assessment tax return. ### Do I need to file a Self Assessment if I get a Simple Assessment tax bill? No. The Simple Assessment process is designed to replace the need for a Self Assessment tax return. However, if you are already registered for Self Assessment, you should contact HMRC to have the PA302 withdrawn. ### How do I pay my HMRC Simple Assessment tax bill? You can pay your bill securely online through your personal tax account, by bank transfer, or by posting a cheque to HMRC. Check your PA302 letter for the correct payment reference number. ### What happens if I cannot pay my Simple Assessment charge on time? If you cannot pay the balance in full, you can contact HMRC to set up a Time to Pay arrangement. This plan allows you to pay outstanding tax liabilities under £50,000 in monthly instalments. ### Can I appeal a Simple Assessment tax calculation after 60 days? Under section 31AA of the Taxes Management Act 1970, the strict legal timeline to query the calculation is 60 days. Appeals after this period are generally only accepted if you have a reasonable excuse for the delay.