Could your self-assessment tax be paid sooner?

The way some taxpayers pay Income Tax could change from April 2029, following government proposals to bring self-assessment payments closer to the point at which income is earned.

The changes would primarily affect people who have both PAYE employment income and additional income that is currently dealt with through self-assessment.

What is being proposed?

• Under the proposed approach, people with PAYE income could have estimated tax on their other income collected through their salary during the tax year.
• The government’s aim is to make tax payments more regular and reduce the gap between earning income and paying the tax due on it.
• For taxpayers who do not have enough PAYE income for this approach, the government is also considering more frequent payments on account. Currently, these are generally made twice a year.

The consultation on the proposals closed in August 2026, with the government now considering the responses received.

What could this mean in practice?

For some taxpayers, spreading payments throughout the year could make it easier to budget for their tax liability and avoid a large payment falling due at once.

However, it could also affect cash flow.

This is particularly relevant for people whose additional income varies throughout the year. If tax is deducted from PAYE income based on an estimate of their self-assessment liability, their take-home pay could change even though their overall annual tax bill has not.

There are also practical considerations for employers. The proposed PAYE approach could result in additional payroll administration, as employers may need to process changes to employees’ tax codes.

Planning ahead

The changes proposed would not expected to take effect until 2029, and the final details have not yet been confirmed.

For anyone with a combination of employment and self-employed, property or other taxable income, however, it is worth understanding how earlier tax payments could affect their personal or business cash flow.

Keeping accurate records and having a clear view of your expected tax liability will become increasingly important as the tax system moves towards more timely reporting and payment.

If you are affected by the proposals, now is a good time to review how you currently plan for your tax payments and consider whether your approach would work if payments were made more frequently.

If you would like to discuss how the proposed changes could affect you, get in touch with the Verallo Tax Team.