Understanding HMRC’s Simple Assessment and How to Pay It

What Is a Simple Assessment?

HMRC issues a Simple Assessment to taxpayers whose tax affairs are straightforward but who still owe additional tax that cannot be collected automatically.

You may receive a Simple Assessment notice if:

• You owe HMRC more than £3,000.

• You have tax to pay on your State Pension.

• You owe tax on interest from bank or building society accounts.

• Your income tax cannot be fully collected through PAYE.

The Simple Assessment letter will arrive by post, and if you have a personal tax account, it will also appear there. It includes details of:

• Your total taxable income (from employment, pensions, or investments).

• The amount of income tax already paid (for example, under PAYE).

• The remaining balance you owe to HMRC.

What to Do When You Receive a Simple Assessment Letter

When you receive your letter, it’s crucial to review the details carefully.
Check that your income figures match those on your P60 or other official documents.

If you believe any figures or calculations are incorrect, contact HMRC within 60 days of the date shown on the letter.
For those who already complete a Self Assessment tax return, you should call HMRC on 0300 200 3300 within the same 60-day period to have the Simple Assessment withdrawn.

Payment Deadlines

The payment deadline depends on when you receive your Simple Assessment letter:

• If received before 31 October 2025: Payment is due by 31 January 2026.

• If received after 31 October 2025: Payment is due within three months of the letter’s date.

Payments can be made:

• Online through your HMRC account.

• By bank transfer directly to HMRC.

• By cheque sent through the post.

If You Need Extra Time to Pay

If you’re unable to pay the full amount by the deadline, HMRC offers a Time to Pay arrangement.
This allows you to spread the cost of your bill and pay in instalments.

You can apply online for a payment plan if:

• You owe between £32 and £50,000, and

• You have no other payment plans or debts with HMRC.

If you can’t apply online, contact HMRC directly to discuss an alternative instalment plan.

Keep in mind: while interest will be charged on amounts paid after the due date, no late payment penalties will apply if a plan is agreed.

Partner note: www.gov.uk/difficulties-paying-hmrc/pay-in-instalments

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