HMRC to Send Tax Bills to 1.8 Million People

HM Revenue and Customs will send simple assessment letters, known as PA302 assessments, to approximately 1.8 million people in the coming weeks. These letters target individuals who owe income tax that was not collected through Pay As You Earn or self-assessment, including tax on dividends, pension income, and savings interest.

The assessments also apply to taxpayers who received an excessive tax-free allowance or those with tax bills typically exceeding £3,000 that cannot be collected via a tax code. HMRC generates these calculations using data provided by employers, financial institutions, and the Department for Work and Pensions.

Recipients are not required to file a tax return, as the letters include the calculated amount due and the method used for the determination. Most taxpayers must settle these bills by January 31, 2027. Payment can be made through the HMRC app, GOV.UK, bank transfer, or cheque.