HMRC urges customers not to ignore Simple Assessment letters

HMRC will send Simple Assessment letters for the 2025 to 2026 tax year this summer.

The letters are sent to those who have tax to pay on income that has not been taxed through Pay As You Earn (PAYE) or Self Assessment.

HMRC is encouraging recipients to not ignore the letters.

HM Revenue and Customs (HMRC) is encouraging people who receive a Simple Assessment letter this summer to not ignore it, and to check the details and pay any tax owed.

Every year HMRC writes to people who need to pay tax on income which has not been collected through PAYE or Self Assessment.

The letters - known officially as PA302 - set out exactly how much tax is owed and why.

Customers may receive a Simple Assessment tax calculation letter if they have tax to pay that HMRC cannot collect automatically, for example:

there is tax to pay on interest on savings or dividends

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 told That's Business: “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.”

HMRC will issue around 1.8 million Simple Assessment letters. People should check the figures in their letter against their own records and pay any tax owed by 31 January 2027, unless a different date is shown. Payments can be made in full or in instalments before the deadline and do not require a tax return.

Customers can pay using the free and secure HMRC app, online via GOV.UK, by bank transfer or by cheque. Visit GOV.UK for a full list of payment methods.

Detailed guidance on Simple Assessment - including a dedicated guide for pensioners - is available on GOV.UK. HMRC's new Tax Confident website also offers clear, simple resources to help people understand their tax affairs with confidence.

The letters are official and arrive by post or appear in a customer's Personal Tax Account online. Customers can check if a letter from HMRC is genuine on GOV.UK.

More information about Simple Assessment.

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. This is a routine annual process.

Working-age customers began receiving letters from 30 June 2026. Pensioners will begin receiving letters from 12 August 2026. A second tranche of letters will be sent between October and December 2026, relating to Bank and Building Society Interest (BBSI) data.

That's Business recommends that if you receive a Simple Assessment letter that you ask your accountant/financial advisor to help you deal with it.

11.48 million beat the Self Assessment deadline

Over 11.48 million people beat the filing deadline and filed their Self Assessment tax return for the 2024 to 2025 tax year by 31 January, HM Revenue and Customs (HMRC) has revealed.

There were 475,722 taxpayers who waited until the final day to file their return. On the day:

27,456 people submitted theirs in the final hour (23:00 to 23:59)

the busiest hour for submitting a return was 17:00 to 17:59, when 32,982 people filed

HMRC advisers handled 5,409 webchats and 10,483 calls to the helplines which, unusually, were opened on a Saturday to provide extra support to customers on the deadline day.

Over 12 million Self Assessment customers were expected to file a tax return and pay any tax owed for the 2024 to 2025 tax year by 31 January. Anyone who needs to file a return and missed the deadline should meet their tax obligations as soon as possible, as late filing and late payment penalties are charged.

Customers can file their tax return now and pay any tax owed via GOV.UK. One of the quickest ways to pay is via the HMRC app. Time to Pay arrangements are available for those who cannot pay their tax bill in full, if they meet the relevant criteria. A full list of payment options is available on GOV.UK

Myrtle Lloyd, HMRC’s Chief Customer Officer, told That's Business:  “Thank you to the millions of people and agents who filed their Self Assessment tax return and paid any tax owed by 31 January. 

"Anyone who missed the deadline should file their return as soon as possible, as penalties and late payment interest may be charged. HMRC digital channels are always the quickest and easiest way for people to sort their tax affairs. Search ‘Self Assessment’ on GOV.UK to find out more.”

The penalties for filing a tax return late are:

an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time

after 3 months, additional daily penalties of £10 per day, up to a maximum of £900

after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater

after 12 months, another 5% or £300 charge, whichever is greater

There are also additional penalties for paying late - 5% of the tax unpaid at 30 days, 6 months and 12 months. Interest will also be charged on any tax paid late.

Customers will be able to file their Self Assessment tax return for the 2025 to 2026 tax year from 6 April 2026.

HMRC confirms joint and several liability: APSCo responds

Responding to the details in the draft Finance Bill 2025-26, Tania Bowers, Global Public Policy Director for the Association of Professional Staffing Companies (APSCo), told That's Business: “The details published in yesterday’s Finance Bill were generally as expected. 

HMRC has clearly set its sights on preventing tax non-compliance, and fraud via umbrella companies are at the centre of its focus. HMRC has published draft legislation that will be introduced in April 2026 which puts the onus on recruitment firms through joint and several liability for PAYE taxes.

“For recruitment firms, now's the ideal time to prepare for the changes before they come into effect. During the consultation period, a few APSCo members expressed significant concerns around the legal implications, but there was a recognition the legislation would create extra administrative burdens for recruiters that engage umbrella companies.

“In particular, there are concerns as to the level of transparency that will be needed to protect recruitment firms. 

"The guidance soon to be published by HMRC must outline not only its own approach, but also clear information to help staffing companies implement best practice strategies. The details published so far don’t provide recruiters with the additional tools to manage the new requirements; they simply put the responsibility on staffing firms to know the details of their umbrella supply chain, or face financial penalties.

“There are some measures that will help recruiters and umbrella companies, including the specification around the transition phases for directors and the prevention of ‘Phoenixism.’ 

"However, more is required. As APSCo has previously highlighted, licensing of the umbrella market and statutory codes of practice are needed to prevent fraud and equip those that are being tasked with tackling the issue with the appropriate resources to do so.

“The digitalisation of services that has been touted as a means of helping small businesses interact with HMRC is welcome news, though the implementation of this will be no easy task. This needs to be made readily available as soon as possible in order to help staffing firms prepare ahead of the changes to legislation.

“APSCo will continue to leverage its close relationship with HMRC to guide and inform members on the changes during the preparation period ahead of the April implementation.”

UK Tax Tips for Sole Traders Running an Online Shop

Selling online as a sole trader? Here’s what you need to know to stay on the right side of HMRC: And keep more of what you earn.

Registering as a Sole Trader

You must register with HMRC if you earn more than £1,000 in a tax year.

Register via the HMRC website and you’ll be given a Unique Taxpayer Reference (UTR).

Keep Accurate Records

Track all sales, expenses, receipts and mileage.

Use software like QuickBooks, Xero or FreeAgent to stay organised.

Know Your Allowable Expenses

You can deduct:

Platform fees (Etsy/Amazon fees)

Postage and packaging

Marketing costs

Office supplies

A portion of home office costs (electricity, broadband, etc.)

Be Aware of VAT Thresholds

If your turnover exceeds £90,000 (as of 2025), you must register for VAT.

Submit Your Self Assessment

Deadline: 31 January for the previous tax year (paper deadline is earlier).

Penalties apply for late filing or payment.

HMRC issues tax avoidance warning. Complex offshore tax avoidance scheme revealed

A complex tax avoidance scheme which moves income offshore has been exposed by HM Revenue and Customs (HMRC) today (29 February 2024), with anyone who has joined the arrangement warned to get out of it as quickly as they can.

The scheme, linked to businessman Darren Patrick-Green, involves contractors joining Singapore registered Procorre LLP to avoid paying income tax and National Insurance.

These workers and their Personal Service Companies (PSCs) enter into contracts to provide services to their clients as usual.

The PSCs invoice these clients and transfer the money received to Procorre LLP.

Procorre LLP then deducts a fee before returning the rest of the income to the individuals or their PSCs. This money comprises various forms of payments including bank transfers from multiple sources and pre-paid cards.

These payments should be subject to income tax and National Insurance Contributions and anyone involved in this scheme should contact HMRC as soon as possible and leave the arrangement.

Darren Patrick-Green (also known as Darren Green) is the Ultimate Beneficial Owner (UBO) of Corre Holdings SA (CHSA), a Swiss-based firm which is the majority owner of Procorre LLP. CHSA is also suspected by HMRC of involvement in further arrangements, potentially including the acquisition of users’ PSCs.

Also named on GOV.UK today for being in control of Procorre LLP is Jason Bougourd and Alizeh Nanji.

Jonathan Smith, HMRC’s Director of Counter Avoidance, said: “Tax avoidance schemes are cynically marketed as clever ways to pay less tax. The truth is they rarely work in the way the promoters claim that they will work and it is the users who could end up with unexpected tax bills.

“We are urging anyone who thinks they have entered these schemes to contact us as soon as possible to get help.”

More detail about this scheme can be found on HMRC’s list of named tax avoidance schemes, promoters, enablers and suppliers on GOV.UK. Two other schemes were also named today. https://rb.gy/iixwei

A spokesperson for HMRC said: HMRC is urging taxpayers to be vigilant and to stay away from tax avoidance schemes. The Don’t Get Caught Out campaign reveals the consequences of using tax avoidance schemes which could be unexpected tax bills, interest and penalties."

If anyone has used a tax avoidance scheme promoted by any firm named by HMRC, the HMRC is asking them to please contact HMRC by emailing: CAGetHelpOutOfTaxAvoidance@hmrc.gov.uk as soon as they can.

VAT fraud offset by selling gold bars

Image of Anthony Bond courtesy of HMRC

Gold bars, luxury watches and rare coins will be auctioned off to recover public money stolen in a VAT fraud.

Anthony Bond, 66, from Great Missenden, Bucks, was jailed for seven-and-a-half years in April 2019 for a ‘missing trader’ VAT fraud.

He lived a luxury lifestyle after stealing millions of pounds and some of his assets will now be sold to recover money for the public purse.

The auction follows a court order that requires Bond to pay back over £1.8 million or face an extra eight years in jail.

Bond’s companies, all of which were based in Chesham, Bucks, dealt mainly in scrap silver and platinum but he used the business to steal VAT through a ‘missing trader’ fraud.

Bond used stolen money to fund a lifestyle that included regular overseas travel, a Spanish holiday home, high-value cars and jewellery worth hundreds of thousands of pounds.

Seized items including gold bars, luxury watches and rare coins will now be auctioned to recover the stolen money.

Debbie Porter, Operational Lead, Fraud Investigation Service, HMRC, said: “Bond stole vast amounts of money to fund a lavish lifestyle he had neither earned nor deserved.

“Our work does not stop when a fraudster is jailed, which is something Bond has discovered with the loss of his luxury assets.

“We will continue to pursue criminals until they repay the money they stole from honest taxpayers which should be used to fund vital public services.

“We urge anyone with information about tax fraud to report it to HMRC via the online form. Search ‘Report Fraud HMRC’ on GOV.UK.”

Bond claimed to have paid millions of pounds in VAT to suppliers over a six-year period.

He used missing traders, companies he knew would disappear and default on VAT payments, to evade paying £17 million.

If Bond does not pay back £1.839,317 by 18 April 2024, he will serve an extra eight years in prison and will still owe the money when he is eventually released.

HMRC says: It’s time to register for Self Assessment

HM Revenue and Customs (HMRC) is reminding anyone new to Self Assessment for 2022 to 2023 tax year that they have only two weeks until 5 October to tell HMRC and to register.

New Self Assessment customers could be someone who has set up a side hustle to earn money in addition to their PAYE job or disposed of cryptoassets; they may be newly self-employed or a new landlord renting out property. Whatever the circumstances, if a customer has any income they've not already paid UK tax on, then they must register for Self Assessment.

Customers can use HMRC’s online checking tool on GOV.UK to quickly assess whether they would need to complete a tax return. And they can then employ the step-by-step guide to check what they need to do to file their first Self Assessment tax return.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “If you're new to Self Assessment and unsure how the process works, please do remember, HMRC is here to help you. 

"We have a wealth of resources and guidance available on GOV.UK to help customers register, sign up to the online services and complete their tax returns. We want to help our customers get their tax right first time. So just search ‘Self Assessment’ on GOV.UK to learn more.”

Customers can register for Self Assessment on GOV.UK. They'll then receive their Unique Taxpayer Reference, which they'll require when they complete their return.

The deadline for customers to file their tax return online and pay any tax owed for the 2022 to 2023 tax year is 31 January 2024. And last year, 96% of customers were able to file their return online.

Filing online means customers don’t have to complete it all at once, they can save their progress and finish it later and have the added reassurance HMRC's received their form when they press submit.

HMRC has a wide range of resources to help customers file a tax return including a series of video tutorials on YouTube and help and support guidance on GOV.UK. 

HMRC has produced two videos to help customers registering online for Self Assessment. These videos are for those who are self-employed and those who aren't self-employed.

If customers think they no longer need to complete a Self Assessment tax return for the 2022 to 2023 tax year, they should tell HMRC before the deadline on 31 January 2024 to avoid any potential penalties or needing to complete a tax return. 

HMRC has produced two videos explaining how customers can go online and stop Self Assessment if they are self-employed and those who aren't self-employed.

Customers must also be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, should they have one. HMRC scams advice is available on GOV.UK.

You might be considering employing your accountant or an advisor to help you with your self-assessment tax returns. If so, please do be careful. 

These resources will be of potential assistance to you:-

https://taxaid.org.uk/guides/taxpayers/choosing-an-accountant-or-tax-adviser

https://www.natptax.com/Pages/default.aspx

Do you need to complete a Self Assessment tax return this year?

If someone has had a change in circumstances, then they might need to complete their first ever Self Assessment tax return for the 2022 to 2023 tax year, HM Revenue and Customs (HMRC) is reminding people.

UK Taxpayers can use the quick and easy free online checking tool on GOV.UK and register with HMRC by 5 October if they do need to self-assess. Taxpayers can also use it if they think they may not need to complete one this year, also.

Myrtle Lloyd, who is HMRC’s Director General for Customer Services, said: “It's really important taxpayers check if they should complete a Self Assessment tax return so they can pay the right amount of tax owed and avoid penalties for not filing a return, if required. It's quick and easy to check by using the interactive tool on GOV.UK - there is no need to ring us.”

Taxpayers might need to complete a tax return if they:

Are newly self-employed and have earned over £1,000

Have multiple income sources

Have received any untaxed income, for example earning money for creating online content

Earn over £100,000 a year

Earn income from property that they own and rent out

Are a new partner in a business partnership

Are claiming Child Benefit and they or their partner have an income of over £50,000

Receive interest from banks and building societies (more than £10,000)

Receive dividends in excess of £10,000

Need to pay Capital Gains Tax

Are self-employed and earn under £1,000 but wish to pay Class 2 NICs voluntarily to protect their entitlement to State Pension and certain benefits

The online checking tool can also be used by those who may no longer need to do Self Assessment, including if they:

Gave up work or retired

Are no longer self-employed

Earn below the minimum income thresholds

If taxpayers no longer think they need complete a Self Assessment tax return for the 2022 to 2023 tax year, they should tell HMRC before the deadline on 31 January 2024 to avoid any penalties.

Taxpayers can register for Self Assessment on GOV.UK. Once registered, they'll receive their Unique Taxpayer Reference, which they will need when completing their tax returns.

HMRC has wide range of resources to help taxpayers file a tax return including a series of video tutorials on YouTube and a new step by step guide, for anyone that is filing for the first time.

Taxpayers must be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

HMRC points out benefits of early Self Assessment tax filing

Self Assessment customers can help themselves by filing their tax return early

Self Assessment customers could take advantage of four key benefits when filing their tax return early, HM Revenue and Customs (HMRC) has revealed.

The Self Assessment deadline for the 2022 to 2023 tax year is 31 January 2024. Customers who file early will have more control over their financial affairs and beat the January rush.

The four benefits to filing early are:

Planning: find out what you owe for the 2022 to 2023 tax year as soon as you've filed, which allows for more accurate financial planning.

Budgeting: spread the cost of your tax bill with weekly or monthly payments using HMRC’s Budget Payment Plan.

Refund: Check if you’re due a refund in the HMRC app once you’ve filed.

Help: you can access a range of online guidance and information to help you file your return and get help if you're unable to pay your bill in full by the 31 January deadline. You may be able to set up a Time to Pay plan.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Customers who file their tax return early get to see exactly what they owe, so as a result they have more time to budget, thus reducing the stress around Self Assessment.

“Given that January is the busiest month for HMRC’s phone lines, I am strongly urging customers to check out the tips on filing their tax return early on GOV.UK and to consider doing so themselves.”

There is lots of help and support available online:

Customers can access the new online tool to check whether they need to do a Self Assessment tax return.

HMRC’s top tips for filing tax returns early can be found on GOV.UK.

Ask HMRC’s digital assistant to find information about Self Assessment. If they cannot help, chat live with an HMRC webchat adviser.

Access webinars and videos about Self Assessment.

However, HMRC customers should be very aware of the risks of falling victim to phishing scams so must never share their HMRC login details with anyone, including any tax agents, should they have one. HMRC scams advice is available on GOV.UK.

However, please be aware that The Self Assessment helpline is temporarily shut down and will be reopening on 4 September 2023. HMRC point out that about two-thirds of all calls can be resolved by customers themselves online on GOV.UK.

Customers can ask for help from HMRC’s digital assistant or chat with a webchat adviser.