The short answer
HMRC’s proposed 2029 Self Assessment payment reform: PAYE collection, Payments on Account, who may be affected and what remains unconfirmed.
HMRC is consulting on a change that would collect some Self Assessment tax through regular PAYE payments from April 2029. The proposal is aimed at people who have both Self Assessment income and PAYE income from employment or a pension. It is intended to spread payments more evenly, rather than waiting for a large Self Assessment bill months after the income was received.
The proposal is not a new tax rate and it is not an immediate change to the 2026/27 or 2027/28 payment calendar. HMRC says the amount of tax should not increase solely because of the reform; the timing of collection would change. The delivery model, safeguards and treatment of complex or fluctuating income remain part of the consultation. Use the Self Assessment Calculator for the current liability, then check HMRC's latest implementation guidance before changing a payment plan.
Targeted from April 2029
Timing, not a new tax
Details are not final
What is HMRC proposing?
Under the current proposal, a person with both PAYE income and Self Assessment income could have part of the Self Assessment bill collected through their PAYE tax code. HMRC would use the most recent tax return to forecast the amount and, where possible, update the tax code used by an employer or pension provider.
The person would still file a Self Assessment return by the normal deadline. HMRC's factsheet says the remaining tax would be settled after the return, normally by 31 January following the tax year. The proposal therefore changes the cash-flow pattern; it does not turn a PAYE worker with freelance, property or investment income into a person who can stop filing.
| Question | Position in the 23 June 2026 factsheet |
|---|---|
| Target start | April 2029, subject to the consultation and implementation work |
| Likely audience | Self Assessment taxpayers who also have PAYE income from work or a pension |
| Collection route | Where possible, an adjustment to the PAYE tax code |
| Tax return | Still required, with any remaining amount due by the normal deadline |
| Final design | Not yet settled, including safeguards and complex-income handling |
Who may be affected?
The proposal is aimed at people who combine PAYE income with income reported through Self Assessment. Examples could include an employee with freelance work, a pensioner with taxable self-employed or property income, or someone with another source of income that is not fully collected through PAYE.
The factsheet does not provide a simple income threshold that lets every taxpayer calculate their future treatment. It says PAYE collection would apply where the person has enough PAYE income to do so, and it recognises that fluctuating or complex income needs careful design. Do not turn the proposal into a universal rule for every sole trader or landlord.
People with only Self Assessment income are not described as part of the confirmed PAYE collection group. HMRC is separately exploring whether more frequent payments on account could apply to other Self Assessment taxpayers, but the factsheet says no decision has been made for that group.
How is this different from Payments on Account?
The existing Payments on Account system already asks some Self Assessment taxpayers to pay twice a year. Each payment is usually half of the previous year's liability, with payments due on 31 January and 31 July. The normal exceptions include a previous-year tax bill below £1,000 or at least 80% of the tax already being collected outside Self Assessment.
The proposed reform is different because it would use PAYE during the year for an affected taxpayer who has sufficient PAYE income. The following comparison is about the mechanism, not a promise that one system will replace the other in every case.
| Feature | Current Payments on Account | Proposed PAYE collection |
|---|---|---|
| Main payment route | Self Assessment account | PAYE deductions where possible |
| Typical timing | 31 January and 31 July | Regular payroll or pension payments |
| Calculation reference | Usually the previous year's bill | Forecast based on the latest return and PAYE capacity |
| Annual return | Still required | Still required |
| Status | Current rule | Consultation and planned reform |
If you currently make Payments on Account, do not assume the 2029 proposal automatically cancels the January or July amounts. The final rules will need to explain how PAYE collection interacts with existing obligations, forecasts, balancing payments and changes in income.
What happens to the Self Assessment deadline?
The proposal does not remove the annual return. HMRC says taxpayers would continue to file the return by 31 January following the tax year, alongside paying any remaining amount due. That means records, allowable expenses, reliefs and other income still need to be checked before filing.
For comparison, the current statutory schedule includes a first Payment on Account on 31 January before the end of the year of assessment, a second payment on 31 July after the year and a balancing payment on 31 January after the year. These dates are the current framework; they should not be presented as the final 2029/30 design until HMRC publishes the implementation rules.
What if your income changes?
Forecast-based collection creates a practical question for people whose income moves sharply during the year. HMRC's factsheet says taxpayers should be able to make forecasts and in-year payments more accurate through an online process if their tax will be significantly higher or lower than forecast.
The consultation also acknowledges that complex and fluctuating income needs safeguards. Until the process is published, do not invent a fixed monthly percentage or assume an employer can correct a forecast without taxpayer input. Keep invoices, property records, pension statements and other evidence that supports the forecast used in the return.
What is confirmed and what is not?
Confirmed in the published policy material
- The government is consulting on more timely collection of Self Assessment tax.
- The target for PAYE collection for affected taxpayers is April 2029.
- The proposal concerns people with both PAYE and Self Assessment income, where sufficient PAYE income exists.
- The annual tax return remains part of the process.
- The policy is presented as a timing change rather than an increase in the total tax owed.
Not final yet
- The exact tax-code calculation and adjustment process.
- The safeguards for low or fluctuating PAYE income.
- The interaction with current Payments on Account and balancing payments.
- The transition arrangements for existing Self Assessment taxpayers.
- Whether and how more frequent payments will apply to people with only Self Assessment income.
Do not treat a consultation as a final tax rule
The factsheet is an official policy proposal, not a complete set of enacted 2029/30 rules. Check the consultation response, legislation, HMRC guidance and employer or pension-provider instructions before relying on a particular deduction amount or date.
Practical preparation for employees and pensioners
Prepare without assuming the final design
- 1Keep your PAYE and Self Assessment income records separate so the forecast can be checked.
- 2Review the current Payments on Account dates and keep enough cash available for the rules that apply now.
- 3When HMRC publishes the final mechanics, compare the forecast with your latest return and expected income.
- 4Check each payslip or pension statement if PAYE collection is introduced and query a material mismatch promptly.
- 5Continue filing the Self Assessment return and keep evidence for expenses, reliefs and variable income.
The sensible preparation is record-keeping, not pre-emptive changes to a tax code or payment schedule. If your income is irregular, build a buffer around both the current payment dates and any future payroll deduction until the transition rules are clear.
Frequently Asked Questions
Evidence and decision checks
A reliable self assessment payment reform 2029 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.
Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.
Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.
Evidence and decision checks
A reliable self assessment payment reform 2029 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.
Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.
Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.
Is HMRC changing Self Assessment from April 2027?
Will I pay more tax under the reform?
Will I still file a Self Assessment return?
Will Payments on Account disappear?
Does the proposal apply to every sole trader?
Is the April 2029 PAYE collection reform already law?
Will people with only Self Assessment income have tax taken through PAYE?
Can I change the PAYE amount if my freelance or rental income falls?
Will Payments on Account still be due before the reform starts?
Is this the same as Making Tax Digital for Income Tax?
This guide reflects HMRC material published on 23 June 2026. The consultation response, legislation, final safeguards and operational guidance should be checked again before the proposed April 2029 start.
Official sources
- HMRC: Timely payments in Income Tax Self Assessment factsheet
- HMRC: payments on account
- GOV.UK: pay your Self Assessment tax bill
- HMRC: Self Assessment statutory payment dates
- HMRC: Fiscal Events 2026 factsheets
These HMRC and GOV.UK sources are the official references for the proposed PAYE collection model, current Payments on Account rules, statutory payment dates and the reform's consultation status discussed here.
Related Guides
UK Tax Calendar 2026/27 — PAYE, Self Assessment and Landlords
A practical UK tax calendar for 2026/27, covering tax-year milestones, Self Assessment, payments on account, PAYE reminders and year-end planning.
Self Assessment Deadlines 2026/27 — Key Dates & Penalties
Self Assessment deadlines for 2026/27: registration, paper and online filing, payment dates, Payments on Account and late penalties.
Payments on Account 2026/27 — How They Work, Due Dates & Reductions
HMRC payments on account 2026/27: the £1,000 trigger, 31 January and 31 July instalments, reductions and late-payment penalties.
Review notes and assumptions
Reviewed
2026-09-20
Assumptions
- This guide reflects HMRC's 23 June 2026 factsheet; the proposed delivery model, safeguards and implementation details may change after consultation.
- The reform is described as a timing change, not an increase in the total tax liability. It does not replace the need to file a Self Assessment return.
- Current payment-on-account rules and dates are included only as a comparison; they remain the operative rules until any reform takes effect.