HMRC is gearing up for one of its largest annual correspondence drives, preparing to dispatch approximately 1.4 million ‘simple assessment’ notifications across the UK this year.
This substantial mailing represents a critical touchpoint for taxpayers who find themselves outside the traditional PAYE and self-assessment frameworks.
Who’s in the firing line?
These targeted communications are heading straight to the doorsteps of individuals who may have overlooked their tax obligations. The primary recipients include:
- Pensioners who may have multiple income streams
- Side hustle entrepreneurs capitalising on the gig economy
- Property investors earning rental income
- Savers and investors with untaxed interest or dividends
- Online sellers who’ve crossed income thresholds
Each recipient likely owes additional tax on income that hasn’t been properly captured through standard employment tax deductions.
Understanding simple assessments
Far from being a new initiative, these simple assessments form part of HMRC’s established annual routine to identify tax gaps. The Revenue’s sophisticated data-matching systems flag individuals who appear to have income exceeding their personal allowance without corresponding tax payments.
The calculations can stem from various sources: bank interest that’s pushed someone over their savings allowance, dividend payments from investments, rental profits from buy-to-let properties or even successful eBay businesses that have evolved beyond casual selling. In some instances, taxpayers may have incorrectly claimed tax-free allowances they weren’t entitled to receive.
What to expect in your letter
Each notification arrives with comprehensive documentation, including:
- A detailed breakdown of the tax calculation
- Clear identification of the income sources in question
- Step-by-step payment instructions
- Important deadline information
Recipients have until 31st January 2026 to settle their outstanding liability, providing a reasonable window to review their financial records and arrange payment.
Your rights and responsibilities
HMRC strongly advises all recipients to scrutinise their assessment thoroughly. Found an error? You have a 60-day window to challenge the figures through the official gov.uk platform.
Should HMRC accept your corrections, they’ll issue an amended assessment. However, if they maintain their position, you retain the right to appeal, but this must be lodged within 30 days of their decision.
The broader context
This substantial letter campaign underscores HMRC’s continued focus on closing the tax gap through improved compliance. As the UK’s tax landscape becomes increasingly complex, these targeted interventions help ensure everyone pays their fair share.
Remember, receiving a simple assessment isn’t necessarily an indication of wrongdoing – it’s often simply a case of complex tax rules catching up with modern earning patterns. The important thing is to engage with the process promptly and ensure your tax affairs are properly resolved.