Taxpayers within Self Assessment currently pay their tax every 6 months, or every 12 months if payments on account are not required. The Government is planning to change this arrangement from April 2029 and introduce more regular collections of tax.
You are likely to be affected by these changes if you have self-employment income and/or rental income reported through Self Assessment (including through Making Tax Digital for Income Tax), and you also receive income taxed via PAYE, such as salary or pension income.
The proposals are at a consultation stage, and as such we do not have full details on how this will work. However, the current proposal is for HMRC to collect forecast liabilities through PAYE during the tax year, potentially via adjustments to tax codes.
This could result in taxpayers making monthly payments towards their anticipated Self Assessment liabilities.
Contact Rachel Roberts for more information by emailing rachel.roberts@randall-payne.co.uk or call 01242 776000.