You may be sent a Simple Assessment letter if you need to pay tax on your income in the 2024/25 tax year
HMRC is sending 1.4 million letters over the next couple of months to UK households that owe tax.
You may be sent a Simple Assessment letter if you need to pay tax on your income in the 2024/25 tax year. If you receive a letter, you’ll be advised to go online on GOV.UK to find out more and then pay any tax owed.
This largely applies to people who have not been taxed through Pay As You Earn (PAYE) or self-assessment. You may also owe HMRC money if you:
- Need to pay tax on interest on savings or dividends
- Received more tax-free allowances than you were entitled to
- Have a second income you haven’t paid tax on
- Didn’t pay enough tax
- Need to pay tax on pension income
The payment deadline is January 31, 2026, unless another date is stated in the letter. It comes after a major broadband provider introduced a new £60 charge and issued a deadline to act.
Simple Assessment payments can be made in full, or in instalments before the deadline. You can make a payment through the HMRC app, online through GOV.UK, by bank transfer or cheque.
Simple Assessment letters are automatically generated and sent to customers when HMRC receives information from employers, Department for Work and Pensions, customers themselves and from banks and building societies.
If you believe an error has been made, you should get in touch with HMRC within 60 days to query it. HMRC has also started sending around four million P800 letters to people who have paid too much tax.
As well as employees who are paid by PAYE, this could also impact pensioners who have paid too much tax. There are lots of reasons why people end up paying too much tax – the biggest reason is that you could be on the wrong tax code.
The most common code for the current tax year is 1257L for people who have one job or pension. This means you can earn £12,570 in one tax year before being taxed, as this is the current personal allowance.
The most common code for the current tax year is 1257L for people who have one job or pension. This means you can earn £12,570 in one tax year before being taxed, as this is the current personal allowance.
You can find your tax code on your latest payslip, on your P45 if you have recently quit your job, or on GOV.UK if you have a Government Gateway ID. If your tax code has been wrong for a while, you can claim back up to four additional years.
HMRC may pay back further than four tax years under certain circumstances – for example, if it was their fault that you overpaid tax. If it turns out you’ve not paid enough tax due to an incorrect tax code, then you will have to pay this back.
