HMRC closes consultation on earlier Self Assessment payments, with changes from April 2029

HMRC ran a consultation on how to introduce more timely payment of income tax in Self Assessment (ITSA). It ran from 23 June to 4 August 2026. HMRC is now analysing the feedback, and the government says it will publish its response in autumn 2026.

What the changes involve

Under the government's Budget 2025 announcement, Self Assessment taxpayers with enough PAYE income (from employment or a private pension) will make payments on account through PAYE from April 2029. Payments are to be collected in each pay period and based on a forecast tax liability.

Forecasts are to be based on previous returns, and taxpayers will be able to update them. After the annual return is filed, the actual tax will still be reconciled with a Balancing Payment or a repayment from HMRC. According to the document, the reforms do not increase the amount of tax due. They bring the timing forward so that tax is paid closer to when the income is earned.

The consultation also covered possible changes for other Self Assessment taxpayers, such as people whose income is taxed only through Self Assessment. It asked how and when payments should be collected, what safeguards taxpayers need, and what support and guidance they will require.

Why HMRC wants change

The document says around 12 million people file a Self Assessment return, bringing in £48 billion of income tax revenue in 2024 to 2025. Around one in five bills in the system is paid late. In many cases there is a gap of up to 22 months between earning income and paying the tax on it.

HMRC says around 7 million Self Assessment taxpayers also have a separate PAYE income source. Of the 9.5 million people who cannot pay through PAYE, around 2.5 million already make Payments on Account twice a year.

The government acknowledges that faster payment may be harder for some people, for example those with seasonal or irregular income. This is to be taken into account when setting payment timings and any easements or safeguards.

What happens next

The government says it will analyse the views submitted and publish its response in autumn 2026. Any legislation needed is to be introduced in a Finance Bill ahead of implementation in April 2029. Final details are therefore not yet settled.

What this means for you

The changes affect people who file Self Assessment returns, including the self-employed and those who have extra income alongside employment, such as rental or business income. If you have PAYE income, from April 2029 you may pay instalments towards your tax alongside your pay. The details have yet to be confirmed, and the rules for people without PAYE income have not been decided. Until the government publishes its response, current payment dates and payments on account remain unchanged.