What is an HMRC simple assessment?

An HMRC simple assessment is a tax bill issued without a Self Assessment return when HMRC believes you owe income tax. It is common when PAYE has undercollected due to changes in pay, pensions or savings interest. You can pay or appeal by the stated deadline.

Why have simple assessments risen so much?

Frozen tax thresholds mean more people cross tax lines even if wages, pensions or interest only rise a little. That creates small underpayments that HMRC collects using simple assessments. In 2023-24, issuance reached 1.32 million, with nearly half for £300 or less.

Do pensioners have to pay these bills?

Many pensioners receive HMRC simple assessment bills, especially with mixed income from state and private pensions or savings interest. A limited exemption starts in April 2027, but it only covers state-pension-only cases. Others remain liable and should budget to avoid late payment penalties.

What should investors watch next?

Track data on HMRC simple assessment volumes, policy updates on frozen tax thresholds, and indicators of retiree spending. Broad small bills can still trim demand in consumer sectors. Use this information to stress test revenue exposure and adjust portfolios if household cash buffers shrink.

Law and Government

January 7: HMRC Auto Tax Bills Top 1.3m as Threshold Freeze Bites

ByDanny Kontos January 7, 2026January 7, 2026

HMRC simple assessment volumes hit a record 1.32 million in 2023-24, with nearly half for £300 or less. Frozen tax thresholds are pulling more pensioners and savers into the tax net, highlighting fiscal drag UK. A limited exemption for state-pension-only cases starts in April 2027. We explain what this means for households and investors in GB, how to plan for pensioners tax bills, and why policy risk could build ahead of further tax decisions that affect income and saving. We also outline practical steps to avoid surprises.