Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 10 November 2026 to Question 40052 on Pensioners: Self-Assessment, what monetary thresholds or other criteria HMRC uses in determining whether collection of a small income tax liability through Simple Assessment is appropriate; and whether those criteria differ for individuals over state Pension age.

Simple Assessment is part of a much larger PAYE End of Year reconciliation process, and the administrative cost of collecting tax can vary depending on an individual’s circumstance. HMRC balances the cost-effective collection of tax with the fair and consistent treatment of taxpayers.

HMRC does not routinely issue tax bills where the administrative cost of collection would exceed the amount of tax due as that would not be a good use of public funds. In 2024/25, HMRC generally did not issue PAYE Tax Calculations and Simple Assessments for underpayments where the liability was below £49.99.

HMRC routinely includes planning assumptions in its long-term strategic plans for telephony calls, correspondence and staff resource requirements, reflecting overall existing and changing policy.

The government has improved HMRC and DWP communications and guidance to raise awareness and understanding of Simple Assessment, including working closely with stakeholders who represent customers of pension age. HMRC has also targeted improving general awareness of tax on pensions to older audiences through the 'Get Tax Confident' campaign, signposting those who need extra support and education to our new website https://taxconfident.campaign.gov.uk