- On 23 June 2026, the government published a consultation entitled Timely Payments in Income Tax Self Assessment (ITSA), seeking views on implementing more timely payment of Income Tax Self Assessment following the Budget 2025 announcement that changes would be made to payment timings from April 2029.
- The consultation focuses on two groups of taxpayers with ITSA liabilities, those who also have income that is subject to PAYE and those who do not. In both cases, HMRC have proposed collecting ITSA liabilities during the tax year to which they relate, either via an additional deduction alongside PAYE or via more frequent payments on account. Payments on account would be payable monthly or quarterly in the tax year to which they relate, rather than 50% being payable on 31 January in the tax year and 50% on 31 July after the tax year ends.
- HMRC state that the measure is intended to smooth tax payments, support budgeting and reduce the risk of taxpayers facing large or unexpected bills. It highlights that, under the current system, tax on Self Assessment income can be paid up to 22 months after the income is received, and that around one in five ITSA tax bills are paid late. There are no specific protections proposed for individuals whose tax would become payable before they have received the relevant income (e.g. seasonal traders or those whose accounts are prepared on the accruals basis).
- The consultation seeks views on key design issues, including how and when payments should be collected, how forecast liabilities should be calculated and updated, what safeguards are needed to protect taxpayers from overpayment or hardship, and what support and guidance taxpayers and their agents would need during the transition.
- Timing: the consultation closed on 4 August 2026. The government intends to publish a response in Autumn 2026, with any relevant legislation to be introduced in a Finance Bill ahead of implementation from April 2029.
Resources (click to open)
- Timely Payments in income tax Self Assessment (HMRC consultation, closed 4 August 2026)
