Simple Assessment (PA302) Calculator UK 2026/27
If HMRC sends you a PA302 Simple Assessment letter, this calculator estimates the income tax you actually owe for 2026/27 using state pension, employment income, and savings interest, less PAYE already deducted. Applies the £12,570 personal allowance, 20%/40%/45% income tax bands, and personal savings allowance. Free, private, runs entirely in your browser.
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Source: HMRC — Simple Assessment + Income tax rates & allowances 2026/27 (gov.uk). Last updated: May 3, 2026.
What Is a PA302 Simple Assessment?
A PA302 is the Simple Assessment letter HMRC sends to UK taxpayers — most often pensioners — who owe income tax that PAYE could not collect during the year. Common triggers are receiving the full state pension (paid gross, not via PAYE) plus a separate workplace or private pension that did not deduct enough tax to cover the tax on the state pension portion. HMRC calculates the underpayment for you, lists the figures on the PA302, and asks you to pay by 31 January following the tax year. You do not need to file a Self Assessment return if you receive a PA302. Source: HMRC — Simple Assessment. Last updated: May 3, 2026.
This calculator estimates what your PA302 should show for tax year 2026/27. Enter your state pension, employment or private pension income, savings interest, and the PAYE tax already deducted. The tool applies the 2026/27 personal allowance (£12,570 — still frozen under the 2024 Autumn Budget), the income tax bands, and the personal savings allowance, then subtracts PAYE already deducted to give the balance owed.
2026/27 UK Income Tax Bands and Allowances
For tax year 2026/27 (6 April 2026 to 5 April 2027), HMRC applies the following bands to total taxable income (England, Wales, Northern Ireland — Scotland has separate Scottish rates):
- Personal allowance: £12,570 — first portion of income tax-free. Tapers by £1 for every £2 of income above £100,000, fully removed at £125,140.
- Basic rate: 20% on income from £12,571 to £50,270.
- Higher rate: 40% on income from £50,271 to £125,140.
- Additional rate: 45% on income above £125,140.
- Personal savings allowance: first £1,000 of savings interest tax-free for basic-rate taxpayers, £500 for higher-rate, £0 for additional-rate.
- Starting rate for savings: 0% on the first £5,000 of savings interest if non-savings income is below £17,570 — common for pensioners with low employment income but a sizeable savings pot.
Personal allowance, higher rate threshold, and additional rate threshold are all frozen until April 2028 under the 2024 Autumn Budget — no inflation indexing. This means more pensioners drift into PA302 territory each year as state pension uplifts (triple lock) push them above the personal allowance.
Why Pensioners Get PA302 Letters
The state pension is paid gross by the Department for Work and Pensions (DWP) — no tax is withheld. If you also receive a workplace or private pension, your tax code on that pension is reduced to collect tax on the state pension via PAYE. But this works perfectly only if HMRC has accurate figures and your other pension is large enough to absorb the full tax owed. When the state pension rises mid-year (e.g. April triple-lock uplift), or you have multiple pensions, or your tax code is out of date, PAYE can under-collect.
The 2026/27 full new state pension is approximately £12,016 per year (£231.05 per week × 52 weeks, after the April 2026 triple-lock uplift). At £12,570 personal allowance, almost all of the new state pension is "used up" by the personal allowance — leaving only £554 of allowance for any other income. Anyone with employment, private pension, or savings income on top will owe tax that PAYE may not capture, triggering a PA302.
How to Pay a PA302 and What If You Disagree
You can pay your PA302 by direct bank transfer using the HMRC sort code 08 32 10 and account 12001020 with reference HMRC + your taxpayer reference, by debit card on gov.uk, or by cheque. The deadline is usually 31 January following the tax year (so 31 January 2028 for 2026/27). HMRC can also collect the amount via your PAYE tax code over the next year if it is under £3,000 — tick that option on the PA302 reply form.
If you disagree with the PA302 figures, you have 60 days from the letter date to query them. Common errors: wrong state pension figure (HMRC sometimes uses 53-week years), missed savings interest, or PAYE tax not yet allocated. Use this calculator to verify your own numbers, then contact HMRC if they differ. If you have multiple income sources or business income, HMRC may switch you to Self Assessment (SA316) instead of Simple Assessment. Last updated: May 3, 2026.
Frequently Asked Questions
What is a PA302 letter from HMRC?
A PA302 is HMRC's Simple Assessment letter telling you exactly how much income tax you owe for the previous tax year because PAYE could not collect it all. Most go to pensioners whose state pension and other income combined exceed the personal allowance, where PAYE on their workplace pension did not catch up with the full liability. You pay by 31 January following the tax year. Source: gov.uk/simple-assessment.
Do I need to file a Self Assessment return if I get a PA302?
No. The PA302 replaces a tax return for that year. HMRC has done the calculation for you using PAYE records, DWP state pension data, and bank-reported savings interest. You only need to query the figures if they look wrong. If you have business or property income, HMRC may switch you to Self Assessment (form SA316) instead.
How much state pension can I receive in 2026/27 before paying tax?
The full new state pension for 2026/27 is approximately £12,016/year (£231.05/wk × 52 wks after April 2026 triple-lock uplift). The personal allowance is £12,570 — frozen until April 2028 — so the full new state pension by itself is just below the threshold. Adding any other income (workplace pension, savings interest) creates a tax bill, often via PA302.
Can I spread the PA302 payment over the year?
Yes if you owe under £3,000 — tick the box on the reply form to have HMRC collect the amount via your PAYE tax code over the next tax year (2027/28). The tax code change spreads it over 12 months. For amounts above £3,000, you usually must pay by 31 January 2028 unless HMRC agrees a Time to Pay arrangement.
What is the personal savings allowance for 2026/27?
Basic-rate taxpayers (income up to £50,270) get £1,000 of savings interest tax-free. Higher-rate taxpayers (£50,270–£125,140) get £500. Additional-rate taxpayers (above £125,140) get £0. Plus a separate £5,000 starting rate band at 0% if non-savings income is below £17,570 — useful for pensioners with low pension income but a large savings pot. This calculator applies all three layers automatically.
What if I disagree with the PA302 figures?
You have 60 days from the letter date to query the calculation. Common errors: HMRC using a 53-week state pension figure instead of 52, missed savings interest from a closed account, or PAYE tax credits not yet allocated. Use this calculator to verify your own numbers, then write to or call HMRC with the figures from your P60 and bank statements. If your circumstances changed mid-year (retirement, marriage), you may also need to update your tax code.