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State pensioners wake up to 'scary' HMRC letter after over a million breach ruleHMRC issued 1.32 million simple assessments in the 2023/24 tax year.NewsJames Rodger Content Editor10:36, 20

May 2025HMRC writing to state pensioners with 'scary' letter demanding they pay up HMRC simple assessments have skyrocketed by an eye-watering 74 per cent in a year - as a stealth tax hits

pensioners. HMRC issued 1.32 million simple assessments in the 2023/24 tax year.

That was up 74 per cent from 757,745 the year before, and marks the highest number on record and nearly triples the volume issued five years ago. HMRC is sending out simple assessment

letters which one personal tax expert has branded "scary".

‌ HMRC collects tax via simple assessment forms without requiring the taxpayer to complete a self-assessment return. Instead, HMRC issues a tax bill directly when it believes the calculation

is straightforward.

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The letters are landing ont he doormats of pensioners who underpay tax due to changes in income that aren’t fully accounted for by PAYE during the year. It comes amid the rising State

Pension rates, courtesy of the Department for Work and Pensions ( DWP ) Triple Lock.

Article continues below Jon Greer, head of retirement policy at Quilter, commented: “This is yet another sign of fiscal drag in action. Millions are sleepwalking into the tax system through

no fault of their own.

"The sharp rise in simple assessments reflects how frozen tax thresholds and higher state pensions are creating more tax liabilities for older people. Many of them may not even realise they

owe anything until HMRC’s letter arrives.”

“While simple assessments are meant to simplify tax collection, they can catch people off guard, especially pensioners who don’t complete a tax return and assume their income is below the

tax-free threshold.

Article continues below "The government’s freeze on allowances is quietly swelling the tax base. Unexpected tax bills can be scary especially if you are already struggling with your

finances.

"If you get one and don’t know what to do, the best course of action is to call HMRC to discuss your options. Do not bury your head in the sand.”