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HMRC Simple Assessment and tax code debts

Not every tax debt comes from self-assessment. Underpaid PAYE and Simple Assessment bills can catch people out.

HMRC & Tax Debts3 min readReviewed July 2026

If HMRC think you've underpaid, they may collect through your tax code the next year, issue a Simple Assessment, or ask you to file self-assessment.

You can dispute the figures, ask for a breakdown, and — if you're facing hardship — request Time to Pay to spread the amount.

HMRC has specific vulnerability guidance. If your health, caring responsibilities or income makes payment impossible, ask them to record this on your case.

General information, not personalised adviceThis article is written to inform. It isn't personalised debt or legal advice, and Debt Compass is not authorised by the Financial Conduct Authority. A team member can talk you through the options and point you to a free debt help service or authorised insolvency practitioner before you decide on anything.

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