Will HMRC Simple Assessments Surprise You?
From June 2025, HMRC simple assessment letters will begin landing on doormats. They’re likely to catch many recipients off guard.
Simple assessments are issued to individuals who don’t need to complete a full self assessment tax return. You may receive one if you:
- owe income tax that can’t be collected automatically,
- owe HMRC £3,000 or more,
- pay tax on your State pension, or
- lack a PAYE code or can’t pay tax through code adjustment.
Each letter relates to the 2024/25 tax year and outlines:
- a calculation of the tax due,
- the payment deadline (31 January 2026),
- how to make the payment, and
- how to dispute HMRC’s figures if needed.
While some people receive a simple assessment annually, for most, the letter arrives unexpectedly. One key factor behind this rise is the ongoing freeze to the personal allowance, held at £12,570 since April 2021. It won’t increase until at least the 2028/29 tax year.
Currently, both old and new State pensions fall below that threshold. However, additional State pension—up 6.7% in 2024/25—may tip the total over the allowance. This could also happen if your pension was deferred and therefore increased.
The process may become more confusing still. If HMRC receives interest income details at different times, you might receive two simple assessments for 2024/25. These are treated as separate, and the second assessment is not linked to the first.
What’s more concerning for HMRC is the possibility of a further rise to the State pension before 2028/29. A 5% increase could push the new State pension beyond the personal allowance, meaning many more retirees may suddenly owe tax. With earnings growth above 5% and inflation exceeding 3%, this scenario seems increasingly likely for 2026/27.
You can find out about simple assessment letters from HMRC on their website.