You may have seen headlines recently suggesting Self Assessment tax could soon be collected monthly, or even through payslips. At this moment these are proposals – not confirmed changes.
HMRC has opened a consultation and is asking for views – nothing has been decided, and nothing changes for you right now.
Here’s what’s being proposed and what it could mean for you as a self-employed consultant.
What’s being consulted on?
On 23 June 2026, HMRC opened a consultation called Timely Payments in Income Tax Self Assessment (ITSA). The idea behind it is that Self Assessment tax is currently paid a long time after the income is earned – in some cases up to 22 months later – and the government believes paying closer to real time would help people budget and reduce the risk of unexpectedly large bills.
Around 1 in 5 tax bills are paid late, and HMRC are wanting to reduce this to ensure they have a steady cashflow as expected, which in turn is passed to central Government to pay for key budget items.
One thing worth stressing: none of these proposals would increase the amount of tax you pay. They’re about when you’d pay, not how much.
The main proposal for self-employed taxpayers
At the moment, if your tax bill is over £1,000, you’ll usually make two Payments on Account (one by 31 January and one by 31 July) with any balance settled the following January.
The consultation explores whether, from April 2029, these could instead become monthly or quarterly instalments, paid during the same tax year you earn the income. The amounts would be forecast from your previous tax return, you’d be able to adjust the forecast if your profits change, and everything would still be reconciled when you file your return – exactly as balancing payments work today.
The consultation also asks whether the £1,000 threshold for Payments on Account is still the right level. If it were lowered, more taxpayers could be brought into making advance payments.
To be clear, this element is genuinely open – the government is seeking views on whether to make this change and how it might work, not announcing that it will happen.
What if you also have a job or pension?
There’s a second strand to the consultation for people who have PAYE income – a part-time employed role or a private pension – alongside their self-employment.
For that group, the government announced at Budget 2025 an intention that, from April 2029, tax on self-employment profits would be collected through their tax code, spread across each payday. The consultation is looking at how that would work in practice, including safeguards.
Even this element still requires legislation before it becomes law, so if you do have a job alongside your self employment, there’s no action to take yet either.
The transition question
One area we’ll be watching carefully is the proposed switchover period. Under the proposals, in 2029/30 taxpayers could find themselves paying tax for the previous year under the current rules at the same time as starting in-year payments for the new one.
The consultation acknowledges this and asks for views on how to smooth it – for example, spreading the July 2029 Payment on Account over several months.
What should you do now?
Nothing needs to change today. The consultation runs until 4 August 2026, the government expects to publish its response in autumn 2026, and any changes would need legislation before taking effect – the earliest date mentioned is April 2029.
If you’d like to have your say, HMRC has said it particularly wants to hear from self-employed taxpayers. You can respond via the online consultation form on GOV.UK before the deadline.
We’ll be following the consultation and will update you if and when any of these proposals become firm plans.
