# What is a PA302 Simple Assessment Tax Letter? Learn what an HMRC PA302 Simple Assessment tax calculation letter is, who receives it, how to check it for common mistakes, and the strict deadlines to pay or dispute your tax bill. **Published:** 2026-07-05 **Updated:** 2026-07-05 **Source:** https://aztajournal.com/gb/pa302-simple-assessment-hmrc-guide --- > A PA302 Simple Assessment is a letter from HMRC calculating the tax you owe using data they already hold. Understanding this notice ensures you pay only what you owe, meet crucial deadlines, and dispute any errors within the legal time limit. A PA302 Simple Assessment is an official letter from HM Revenue and Customs (HMRC) that details how much Income Tax you owe for a specific tax year. HMRC automatically calculates this bill using information it already holds from employers, pension providers, and other government bodies. It serves as an alternative to the traditional Self Assessment system for taxpayers with straightforward financial affairs. ## Key Takeaways - **Automatic Calculation**: HMRC calculates your tax bill on your behalf using existing data, removing the need to file a full tax return in many cases. - **Check for Errors**: Proactively cross-examine all figures against your own financial documents, as mistakes regarding savings interest and pensions are common. - **60-Day Dispute Window**: Under the Taxes Management Act 1970, you must formally query any incorrect calculations within 60 days of the letter's issue date. - **Strict Deadlines**: Keep an eye on payment deadlines to avoid interest charges, with payments typically due by 31 January following the tax year. ## What is a simple assessment PA302 letter from HMRC? A PA302 letter is an official calculation of your Income Tax liability sent by HMRC when they have enough data to calculate your tax bill without a tax return. This mechanism acts as an alternative to the Self Assessment tax return for individuals with simpler financial situations. Introduced under the Finance Act 2016, this process is legally governed by sections 28H to 28J of the Taxes Management Act 1970. Under this legislative framework, HMRC uses third-party data from banks, employers, and the Department for Work and Pensions (DWP) to calculate your liability. Instead of completing a tax return, you simply check their figures and make the payment. ## Who receives a PA302 Simple Assessment? You will receive a PA302 Simple Assessment if you have unpaid tax that HMRC cannot automatically collect through a standard PAYE tax code. This usually applies to individuals who fall into specific tax scenarios. The typical triggers for receiving this assessment include: 1. Taxpayers who receive a State Pension that exceeds their personal tax allowance (£12,570 for the 2025/26 tax year). 2. Individuals who have untaxed savings interest from banks or building societies that cannot be coded out. 3. Taxpayers who owe £3,000 or more in Income Tax that cannot be collected through their Pay As You Earn (PAYE) code. 4. Anyone whose tax cannot be automatically deducted from their ongoing income sources. ## What does your PA302 letter contain? Your PA302 letter provides a breakdown of your taxable income, the tax already deducted, and any outstanding balance for the tax year. The document lists your income sources, including employment pay, state benefits, and savings interest. It also details the tax you have already paid through PAYE or other deductions. Finally, the letter highlights the exact amount you still owe, the payment deadline, and guidance on how to submit payment or lodge a dispute. ### How to check your PA302 for common errors To check your PA302 for errors, cross-reference HMRC's figures with your P60, P45, DWP letters, and bank statements. The Low Incomes Tax Reform Group (LITRG) and the ICAEW have highlighted that these letters frequently contain mistakes, particularly regarding savings interest estimates. You should verify your state benefits carefully. If you receive state benefits paid every four weeks, you must multiply the payment amount by 13, rather than 12, to verify the annual total. ## How and when to pay your Simple Assessment bill You can pay your Simple Assessment bill online, via bank transfer, or by cheque, depending on when your letter was issued. Your payment deadline depends entirely on the date printed on your PA302 letter. The following guide details the deadlines for the 2025/26 tax year: | Letter Date | Payment Due Date | | --- | --- | | Before 31 October 2026 | By 31 January 2027 | | On or after 31 October 2026 | Within 3 months of the letter date | ## How to dispute a PA302 letter To dispute a PA302 letter, you must contact HMRC within 60 days of the letter date to query the calculation. Under Section 31AA of the Taxes Management Act 1970, you must query the assessment within a strict 60-day window. You can contact HMRC by phone or in writing to explain which figures are incorrect. You should provide evidence, such as P60s or bank interest certificates, and state what the correct numbers should be. ### How do you appeal a decision to the tribunal? If you remain unhappy after HMRC processes your dispute, you can appeal to the First-tier Tax Tribunal within 30 days. You must receive HMRC's formal final decision on your initial query before you can appeal to the tribunal. Legally, you cannot bypass the 60-day query process and go straight to the First-tier Tax Tribunal. Once HMRC issues their decision on your query, you have 30 days from the date of that decision letter to submit your appeal to the tribunal. ## Key watch-outs and multiple tax letters Taxpayers should look out for duplicate letters, wrong savings figures, and systemic clashes with standard Self Assessment filings. - **Multiple Letters**: You may receive a second, revised calculation once HMRC receives updated bank interest data. If you already paid the first bill, deduct that amount from the new total. - **Self Assessment Clash**: If you are already registered for Self Assessment and receive a PA302, contact HMRC immediately to check if the Simple Assessment should be formally withdrawn. - **Interest Penalty Risk**: Do not ignore a PA302 letter. Failing to pay by the statutory deadline leads to automatic interest charges on the unpaid tax debt. ### What is the difference between Self Assessment and Simple Assessment? Under Self Assessment, you must manually complete and submit a tax return to report your income. Under Simple Assessment (PA302), HMRC calculates your tax liability automatically using information they already hold, removes the need for a tax return, and simply sends you the final bill. ### What happens if I miss the 60-day limit to dispute my PA302? If you miss the 60-day limit specified under Section 31AA of the Taxes Management Act 1970, the assessment becomes legally binding. You may lose your right to object or appeal unless you have a reasonable excuse for the delay that HMRC accepts. ### Can I set up a payment plan for a PA302 tax bill? Yes. If you cannot afford to pay your Simple Assessment bill in full, you can apply online for a Time to Pay arrangement with HMRC. This option is generally open to taxpayers with total tax debts under £50,000. ### Why did I get two different PA302 letters for the same tax year? HMRC frequently issues amended PA302 letters when they receive updated financial information, such as late savings interest data from banks. If you receive an updated letter, you should subtract any payments you already made from the new tax balance.