HMRC Tax Bills 2026: 1.2 Million People Face Tax Demands – 4 Reasons You Could Receive a Bill
UK News | Tax and Personal Finance
Date: November 10, 2026
HM Revenue and Customs (HMRC) has issued approximately 1.2 million Simple Assessment tax calculations (PA302s) for the 2024/25 tax year, raising fresh concerns about the accuracy and transparency of the UK’s tax collection system.
According to reports, HMRC has been unable to provide figures showing how many of these tax calculations have been challenged by taxpayers, amended or cancelled because of errors.
The issue has attracted criticism from former pensions minister Sir Steve Webb, who questioned why HMRC does not routinely monitor the number of disputed or withdrawn assessments.
A Simple Assessment is a tax calculation issued by HMRC when an individual owes additional Income Tax that cannot easily be collected through their regular tax code or Self Assessment return.
For anyone living and working in the UK, understanding how these bills work and why they are issued can help avoid unexpected tax demands.
What Is an HMRC Simple Assessment Tax Bill?
A Simple Assessment is a formal tax calculation sent by HMRC to individuals who have underpaid tax and need to make an additional payment.
HMRC uses information supplied by employers, pension providers, banks and building societies to calculate how much tax an individual should have paid during a tax year.
If HMRC identifies an outstanding tax liability that cannot be collected through the person’s PAYE tax code, it may issue a Simple Assessment notice, also known as a PA302.
The notice is usually delivered by post or made available through the individual’s Personal Tax Account.
It explains:
- How much tax HMRC believes you owe.
- How the amount has been calculated.
- The tax period covered by the bill.
- How and when payment should be made.
Taxpayers should carefully review the information to ensure that their income, pension details and other relevant figures are correct.
Four Reasons HMRC May Send You a Simple Assessment
HMRC identifies four main circumstances in which an individual may receive a Simple Assessment tax bill.
1. You Owe Income Tax That Cannot Be Collected Through Your Tax Code
If you have underpaid Income Tax and HMRC cannot recover the outstanding amount through adjustments to your PAYE tax code, it may send you a Simple Assessment.
This can happen when the amount owed cannot conveniently be collected from your salary or pension payments.
2. You Owe £3,000 or More in Tax
You may receive a Simple Assessment if your outstanding Income Tax liability is £3,000 or more.
Rather than attempting to recover the amount through your regular tax code, HMRC may issue a separate bill explaining what you owe and how to pay.
3. You Need to Pay Tax on Your State Pension
Some pensioners may receive a tax bill because their total taxable income, including their State Pension, exceeds their available tax-free allowance.
Although the State Pension is generally paid without tax being deducted at source, it can still be subject to Income Tax.
HMRC may therefore issue a Simple Assessment to collect any tax due.
4. You Have Income That Has Not Been Taxed
You may also receive a Simple Assessment if you earn additional income on which tax has not already been deducted.
Examples include:
- Interest earned from savings accounts.
- Dividend income from investments.
- Other taxable income that has not been fully accounted for through PAYE.
HMRC may use information provided by banks, building societies and other relevant organisations to calculate the additional tax owed.
Concerns Grow Over the Accuracy of HMRC Tax Bills
Despite issuing approximately 1.2 million Simple Assessment calculations for the 2024/25 tax year, HMRC has reportedly been unable to provide figures showing how many were challenged, amended, cancelled or withdrawn.
According to reporting by City A.M., HMRC said the information was not readily available and that retrieving it would cost more than it was worth.
This has raised questions about how effectively the tax authority monitors the accuracy of the assessments it sends to taxpayers.
Sir Steve Webb, a former pensions minister and partner at pension consultancy LCP, criticised the lack of available management information.
He argued that HMRC should keep proper records of how frequently taxpayers challenge Simple Assessments and how often those challenges result in changes or cancellations.
Without this information, it becomes difficult to determine how frequently errors occur or whether the accuracy of the system is improving.
He also called on HMRC to begin recording challenges to Simple Assessments so that the tax authority can properly monitor the effectiveness of the process.
What Should You Do If HMRC Sends You a Tax Bill?
Receiving a Simple Assessment does not mean you should automatically assume that every figure is correct.
If you receive a PA302 notice, take the following steps:
- Check your personal details: Make sure the notice relates to you and covers the correct tax year.
- Review your income: Compare the figures with your payslips, P60, pension statements and bank interest records.
- Check the calculation: Ensure that the income and tax already paid have been properly accounted for.
- Contact HMRC if something is wrong: If you disagree with the calculation, contact HMRC promptly and explain the discrepancy.
- Pay by the deadline if the amount is correct: Follow the payment instructions provided in your assessment.
Do not ignore a tax assessment simply because you believe it contains an error. Contact HMRC and follow the official process for querying or correcting the calculation.
Final Thoughts
With approximately 1.2 million Simple Assessment tax calculations issued for the 2024/25 tax year, more taxpayers may encounter unexpected demands from HMRC.
The concerns raised about the lack of information on disputed and cancelled assessments also highlight the importance of transparency and accountability in the tax system.
Whether you are employed, retired or earning additional income from savings and investments, it is important to understand your tax responsibilities and check any assessment carefully before making payment.
Official Information: For guidance on Simple Assessment tax bills, payment deadlines and how to query a calculation, visit the UK government’s official website:
https://www.gov.uk/tax-overview
This article provides general information and should not be treated as individual tax or financial advice.
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