HMRC sending tax demand letters to state pensioners in August | Personal Finance | Finance
HM Revenue and Customs (HMRC) has confirmed it is sending out tax demand letters to state pensioners in August.
The letters are Simple Assessment letters for the 2025 to 2026 tax year which will be sent to people who need to pay tax on income that hasn’t been collected through PAYE or Self Assessment. The letters, which are known officially as PA302, set out exactly how much tax is owed and why, and HMRC says this should not be ignored. Around 1.8 million Simple Assessment letters are being sent out by HMRC in total, with pensioners to start receiving them from August 12, 2026.
Simple Assessment (PA302) letters are automatically generated when HMRC receives data from employers, The Department for Work and Pensions (DWP) and financial institutions confirming that tax is due, which is a routine annual process.
Pensioners who receive a letter are asked to check the figures against their records to ensure they are correct, and to pay any tax owed by the deadline of January 31, 2027, unless a different date is shown.
HMRC says payments can be made in full or in instalments before the January 31 deadline, and do not require a tax return.
According to the tax office, you’ll receive a Simple Assessment tax calculator if you have tax to pay that HMRC cannot collect automatically, for example:
Customers may receive a Simple Assessment tax calculation letter if they have tax to pay that HMRC cannot collect automatically, for example:
a second income has not been taxed
tax is due on pension income
received more tax-free allowance than they were entitled to
the tax cannot be collected through a tax code (for example, larger amounts owed, typically £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.”
Payments can be made using the free HMRC app, online via GOV.UK, by bank transfer or by cheque.
Detailed guidance on Simple Assessment, including a dedicated guide for pensioners, is available on GOV.UK. HMRC said the letters will arrive by post or will appear in a customer’s Personal Tax Account online.
