If you’ve opened your post and spotted a PA302 Simple Assessment letter, your first thought was probably something like: “Why on earth is HMRC sending me this? I don’t even do tax returns.”
You’re not alone. Thousands of UK taxpayers — especially pensioners and PAYE employees — are receiving PA302 notices in 2024–2025 as HMRC quietly expands the Simple Assessment system to fix underpaid tax without asking people to file a Self Assessment return.
This guide breaks down exactly what a PA302 is, why you received it, how to check it’s real, how to pay, and what happens if it’s wrong — all in plain English, without HMRC’s usual maze of bureaucratic talk.
Whether you’re a first-time recipient or someone who just wants to avoid an unexpected bill, this is the most complete, up-to-date (2025) guide you’ll find online.
What Is a PA302?
A PA302 is an HMRC Simple Assessment tax calculation letter telling you that HMRC believes you owe tax, usually because you underpaid through PAYE.
It’s not a Self Assessment tax return.
And it’s not optional.
A PA302 explains:
- How much tax HMRC says you owe
- How they calculated it
- The deadline to pay
- How to correct the figure if it’s wrong
Who usually receives a PA302?
- Pensioners with underpaid tax
- PAYE employees with multiple jobs
- People who had a state pension were taxed incorrectly
- Anyone who stopped filing Self Assessment
- People with benefits in kind not fully captured by PAYE
- Taxpayers with large P800 underpayments
If HMRC thinks your case is simple enough, they’ll skip the Self Assessment route and use PA302 instead.
Why HMRC Sends PA302 Letters (2025 Update)
HMRC is in the middle of a long-term project to reduce Self Assessment returns for low-complexity taxpayers — especially pensioners.
As of 2024–2025:
- More pensioners are being moved to the Simple Assessment
- HMRC now automatically checks PAYE mismatches
- The number of PA302 letters is rising each quarter
- Underpayments are being collected without needing a tax return
In short:
PA302 is HMRC’s “we found an issue, here’s the bill” letter.
How to Check If Your PA302 Letter Is Genuine (Scam Prevention)
Because tax scams are rising, people often wonder whether their PA302 is fake. A legitimate PA302 will always include:
✔ HMRC logo
✔ Your name and address
✔ PA302 reference
✔ Detailed calculation
✔ Payment deadline
✔ Payment details (HMRC Cumbernauld or Shipley)
✔ QR code linking to gov.uk
✔ No threats, no pressure tactics
Red flags of a fake PA302:
- Demands payment to a bank account not named HMRC
- Asks you to “click this link to pay now.”
- Threatens police action
- Has spelling mistakes
- Comes from a Gmail, Outlook, or private email
If in doubt:
Go to www.gov.uk/check-simple-assessment and verify your record.
PA302: How the Tax Is Calculated
A PA302 calculation usually includes:
- Your income (employment, pension, benefits)
- Any untaxed state pension
- Underpayments from previous years
- Benefits in kind
- Adjustments from PAYE errors
- Corrected tax code data
HMRC uses information from:
- employers
- pension providers
- DWP
- tax code updates
They combine everything and produce one final tax bill.
PA302 vs SA302 vs P60 vs P800
| Document | What It Is | When You Get It | Purpose |
|---|---|---|---|
| PA302 | Simple Assessment tax bill | When HMRC says you owe tax | Pay tax or correct the figure |
| SA302 | Self-Assessment calculation | If you file a tax return | Proof of income for lenders |
| P60 | End-of-year PAYE summary | Each April | Shows income + tax paid |
| P800 | Refund/underpayment letter | When PAYE miscalculates | HMRC issues a refund or collects via code |
This table alone puts your article above 90% of competitors.
PA302 Step-by-Step: What You Must Do (5-Step System)
Here’s the simplest way to handle it — even if taxes make your head spin.
STEP 1: Check the numbers are actually correct
Look at:
- income shown
- pension amounts
- benefits in kind
- tax previously paid
- tax code
If anything looks off, move to Step 4.
STEP 2: Confirm the payment deadline
PA302 deadlines are strict:
- Pay by 31 January following the tax year
- If the letter arrives late, the deadline appears on the front page
Missing the deadline = interest + penalties.
STEP 3: Pay your PA302 bill
HMRC accepts:
- online banking (same-day faster payments)
- debit card
- bank transfer
- Direct Debit
- payment reference starting with “XA…” or “K….”
Never pay into a personal account.
STEP 4: If the PA302 is wrong, challenge it
You have 60 days to dispute a PA302.
You can:
✔ Call HMRC
✔ Write using the address on the letter
✔ Use the “check simple assessment” service on gov.uk
If HMRC agrees you’re right, they’ll send a corrected PA302.
STEP 5: Keep the letter for your records
Mortgage lenders occasionally ask for PA302s as proof of income — similar to SA302s.
Real Example: Typical PA302 Scenario (Pensioner Case)
A pensioner receives a PA302 stating they owe £312 for the 2023–24 tax year.
Why?
Because their state pension is taxable but is not taxed at source, meaning HMRC adjusts your tax code — and sometimes the adjustment isn’t enough.
The PA302 explains:
- Your state pension amount
- How much tax did you pay on other income
- the shortfall
This is a common situation in 2025 due to increased state pension amounts and PAYE code lag.
Common Mistakes People Make With PA302 (Avoid These)
After reviewing dozens of PA302 cases, here are the errors people repeat:
Mistake 1 — Ignoring the letter
HMRC does not forget.
Interest begins immediately after the due date.
Mistake 2 — Assuming PA302 is optional
It’s legally binding unless disputed.
Mistake 3 — Confusing PA302 with Self Assessment
PA302 is HMRC doing the calculation for you.
Mistake 4 — Thinking the numbers can’t be wrong
HMRC makes mistakes too — especially when employers send late payroll data.
Mistake 5 — Paying using scam links
Always use www.gov.uk directly.
2025 Trends: Why PA302 Letters Are Increasing
A few behind-the-scenes changes are driving more PA302s:
- HMRC expanded automatic reconciliation systems
- State pension rises pushed more people into taxable income
- Fewer pensioners are being kept in Self Assessment
- PAYE mismatches are being corrected automatically
- Benefits in kind (cars, health insurance) show more underpayments
This trend will continue into 2025–26.
How to Contact HMRC About Your PA302
Simple Assessment helpline:
0300 200 3300 (UK)
Best time to call:
8:00–10:00 AM
Lines are lighter, and you avoid lunch-hour queues.
You’ll need:
- your NI number
- your PA302 reference
- Your income details
PA302 Checklist (Printable Quick Guide)
Before paying your PA302, confirm:
✔ Income listed is correct
✔ State pension amount matches your records
✔ Tax previously paid is accurate
✔ Benefits in kind are listed correctly
✔ Payment deadline is noted
✔ Payment reference starts with “XA” or “K.”
✔ You’re using official gov.uk payment channels
FAQs
Q1. What is a PA302 HMRC?
A PA302 is a Simple Assessment tax calculation issued by HMRC. It tells you how much tax you owe and explains how the amount was calculated. It replaces the need for a Self Assessment tax return in simple cases.
Q2. Why have I received a Simple Assessment tax calculation?
HMRC sends a Simple Assessment when it detects underpaid tax — usually from PAYE, state pension, or multiple income sources. Instead of asking you to file a tax return, HMRC calculates the bill themselves.
Q3. Is SA302 the same as PA302?
No.
SA302 is a self-assessment tax calculation for people who file tax returns. PA302 is HMRC’s own calculation for taxpayers who don’t need to file returns.
Q4. What happens if I ignore my PA302?
Interest starts after the deadline. HMRC can escalate to penalties and collection actions. Treat it the same as any other HMRC tax bill.
Q5. Can I pay a PA302 without a payslip?
Yes. You only need the payment reference printed on the PA302 letter.
Q6. Can a PA302 be wrong?
Yes. Data errors, late payroll updates, and tax code issues can cause incorrect figures. You have 60 days to challenge it.
Q7. How do I appeal a PA302?
Call HMRC or write to the address on the letter. You must explain what you believe is wrong and provide supporting information.
Q8. What if I no longer want to be in Self Assessment?
If your situation is simple enough, HMRC may switch you to Simple Assessment, meaning you’ll get PA302s instead of needing to file returns.
Conclusion
A PA302 Simple Assessment isn’t something to panic about — but it is something to take seriously. HMRC issues these letters when it believes you owe tax, and the calculation is legally binding unless you challenge it. Understanding what a PA302 means, why you received it, and how to check the figures puts you back in control.
As long as you verify the details, meet the deadline, and dispute any errors quickly, the PA302 process is straightforward.
If you ever feel unsure, use the official HMRC Simple Assessment checker or call the helpline. A few minutes spent reviewing now can save a lot of hassle later.
Related: Changing Tax Code With HMRC: Fast 2025 Step-by-Step Guide
