HMRC Urges Early Tax Filings and Simple Assessment Payments

The HM Revenue and Customs (HMRC) has launched a series of alerts urging millions of UK taxpayers to submit their 2025-26 Self Assessment returns early to avoid financial uncertainty. The agency clarified that filing early does not require immediate payment, as the final deadline remains January 31, 2027, but early submission allows taxpayers to budget for bills and receive refunds faster.

As part of its collection efforts, HMRC is issuing approximately 1.8 million Simple Assessment letters (coded PA302) to households with untaxed income from dividends, savings, or pensions. Working-age taxpayers have already begun receiving these notices, while pensioners will receive theirs starting August 12. These notices target individuals whose tax cannot be collected via PAYE or who owe amounts typically exceeding £3,000.

Additionally, HMRC set a midnight deadline for July 31 for taxpayers to make their second payments on account for the 2025-26 tax year. These payments are intended to spread the cost of the final tax bill. While most debts are due by January 31, 2027, the agency and financial advisors warned that missing the July deadline could lead to accumulating late payment fines. Taxpayers can settle debts or manage payment plans via the HMRC app and GOV.UK.