HMRC’s New Self Assessment Payment Plans: What Could Change?

HMRC is looking at changes that could make Self Assessment tax payments more timely. The aim is to bring tax payments closer to when income is earned, rather than waiting until after the end of the tax year.

For many self-employed people and other Self Assessment taxpayers, this could change how they plan and manage their tax payments.

How does Self Assessment work now?

Under the current system, Self Assessment tax and, where applicable, Class 4 National Insurance are generally due by 31 January after the end of the tax year.

For example, tax relating to the 2025/26 tax year is normally due by 31 January 2027.

Some taxpayers also need to make Payments on Account towards their next tax bill. These are normally paid in two instalments:

• 31 January
• 31 July

Each payment is usually 50% of the previous year’s tax and Class 4 National Insurance liability.

What is HMRC proposing?

HMRC wants to move towards a system where tax is paid closer to the time the income is received.

For taxpayers who have PAYE income as well as Self Assessment income, payments towards their forecast Self Assessment liability are planned to be collected through PAYE from 6 April 2029.

This could mean smaller amounts of tax being collected throughout the year instead of facing a larger bill later.

What about taxpayers without PAYE income?

HMRC is also considering changes for people who do not have enough PAYE income to collect their Self Assessment tax.

One proposal is to make Payments on Account more frequent, potentially allowing tax to be paid throughout the year.

The payments could be based on an estimate of the taxpayer’s expected tax liability, using information from previous tax returns.

Once the tax return is submitted, the amount paid would be compared with the actual liability. Any shortfall would need to be paid, while an overpayment could be refunded.

These changes are still being considered and are not yet finalised.

Could this affect your cashflow?

The main change would be when tax is paid, rather than how much tax is ultimately due.

Paying tax more regularly could make it easier for some taxpayers to budget and avoid a large tax bill.

However, it could also create cashflow pressure, particularly for businesses with seasonal or fluctuating income.

The transition to the new system could be particularly important, as taxpayers may temporarily have payments relating to more than one tax year.

How can you prepare?

Although the proposed changes are not fully in place yet, taxpayers can start preparing by:

• Keeping accurate financial records
• Monitoring profits throughout the year
• Setting money aside regularly for tax
• Reviewing Payments on Account where income changes
• Planning ahead for potential changes from 2029

Good bookkeeping and regular tax forecasting can help make future tax payments easier to manage.

What happens next?

HMRC’s consultation on Timely Payments in Income Tax Self Assessment closed in August 2026. The government expects to publish its response in Autumn 2026.

Until the final rules are confirmed, taxpayers should continue to follow the existing Self Assessment payment deadlines.

Key takeaway

HMRC is moving towards a more timely approach to Self Assessment tax payments. From April 2029, taxpayers with sufficient PAYE income are expected to make payments towards their Self Assessment liability through PAYE, while HMRC is considering more frequent payments for other taxpayers.

Planning your cashflow now can help you prepare for these changes.

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