HMRC warns taxpayers not to ignore Simple Assessment letters as 1.8 million notices issued
- Perry Richardson
- Jul 28
- 2 min read
HM Revenue and Customs (HMRC) is urging taxpayers not to ignore Simple Assessment letters arriving this summer, warning that around 1.8 million people will receive notices for the 2025 to 2026 tax year outlining tax that still needs to be paid.
The letters, officially known as PA302 Simple Assessment calculations, are sent to people whose tax cannot be fully collected through the Pay As You Earn (PAYE) system or Self Assessment. Instead of requiring a tax return, HMRC calculates the amount due and issues a payment request directly.
Recipients are being encouraged to check the figures carefully against their own records before paying any outstanding tax by 31 January 2027, unless an alternative payment date is shown on the notice.
Drivers in the taxi and private hire industry may be among those receiving a letter if they have additional untaxed income alongside PAYE earnings, pension income, savings interest or dividend income. It may also apply where too much tax-free allowance has been received or where tax owed is too large to recover through a tax code, typically amounts of £3,000 or more.
Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “If you receive a Simple Assessment letter and have tax to pay, please don’t ignore it. It is quick and easy to pay any tax owed via the HMRC app.
“If you need extra support, or want to find out more, search ‘Simple Assessment’ on GOV.UK.”
HMRC said customers do not need to complete a Self Assessment tax return if they receive a Simple Assessment notice, unless they are separately required to file one. Tax can be paid in full or in instalments before the deadline using the HMRC app, online through GOV.UK, by bank transfer or by cheque.
For self-employed taxi and private hire drivers already registered for Self Assessment or Making Tax Digital for Income Tax, the announcement is unlikely to change their normal reporting obligations. However, those with additional sources of untaxed income should continue checking HMRC correspondence carefully to ensure any liabilities are dealt with before payment deadlines.
