Tax Planning
Planning Ahead: ‘‘Timely Payments’’ for UK Taxpayers with PAYE Income (from April 2029)
If you’re a taxpayer who earns both PAYE and Self Assessment income, a key change is coming in April 2029: you’ll need to begin paying more of your Self Assessment liability through PAYE. Here's how to plan now to smooth the transition.
By NomadicTax Research Team • 6 min read • August 28, 2026
## What’s Changing?
From **April 2029**, the UK government will require those who file Self Assessment and also receive income under PAYE (employment, pensions) to pay more of their Self Assessment tax liability through their tax code rather than waiting until the filing deadline. ([gov.uk](https://www.gov.uk/government/publications/fiscal-events-2026-factsheets/timely-payments-in-income-tax-self-assessment-factsheet?utm_source=openai))
## Why This Matters
- Under current rules, many taxpayers are left facing large, unexpected tax bills because Self Assessment income is taxed after the fact, up to 22 months after it’s earned. ([gov.uk](https://www.gov.uk/government/publications/fiscal-events-2026-factsheets/timely-payments-in-income-tax-self-assessment-factsheet?utm_source=openai))
- Late payments lead to penalties and interest, increasing costs and stress. Around **1 in 5** Self Assessment bills are paid late under the existing system. ([gov.uk](https://www.gov.uk/government/publications/fiscal-events-2026-factsheets/timely-payments-in-income-tax-self-assessment-factsheet?utm_source=openai))
## Who Will Be Affected?
- Individuals with **PAYE** income (e.g. from employment or pension) **and** additional income subject to Self Assessment (e.g. freelance income, investment income) will be impacted. ([gov.uk](https://www.gov.uk/government/publications/fiscal-events-2026-factsheets/timely-payments-in-income-tax-self-assessment-factsheet?utm_source=openai))
- Taxpayers with only Self Assessment income may also see reforms to payment schedules; although details are not yet settled. ([gov.uk](https://www.gov.uk/government/publications/fiscal-events-2026-factsheets/timely-payments-in-income-tax-self-assessment-factsheet?utm_source=openai))
## Actions to Take Now
- **Review your income types**: If you have a mix of PAYE and non-PAYE (self-employed, investment, rental) income, estimate your exposure and current Self Assessment liability.
- **Start saving earlier**: With tax payments expected to be spread across the year more via PAYE, having cash flow management strategies now will help—think monthly budgeting, separate savings accounts.
- **Engage with your PAYE coding**: HMRC will use your most recent return to forecast liabilities. But you’ll have options to update or correct forecasts using a simple online form. ([gov.uk](https://www.gov.uk/government/publications/fiscal-events-2026-factsheets/timely-payments-in-income-tax-self-assessment-factsheet?utm_source=openai))
- **Keep good accounting records**: This ties into Making Tax Digital; accurate, up-to-date records will help ensure your forecasts are appropriate. Software compatibility matters.
## Comparison with Other Regimes
Other OECD countries (e.g. **Canada, France, Australia**) require more in-year tax payments, rather than post-year remittances. These systems tend to reduce surprises and make compliance smoother. ([gov.uk](https://www.gov.uk/government/publications/fiscal-events-2026-factsheets/timely-payments-in-income-tax-self-assessment-factsheet?utm_source=openai))
## What’s Still Under Consultation
- How the payments via PAYE will exactly be calculated for each individual.
- Whether changes will also apply to those with Self Assessment-only income.
- Transition arrangements and safeguards. Government is consulting through late 2026. ([gov.uk](https://www.gov.uk/government/publications/fiscal-events-2026-factsheets/timely-payments-in-income-tax-self-assessment-factsheet?utm_source=openai))
## Bottom Line
If you’re in the UK and earn via both PAYE and Self Assessment income, **April 2029** marks a major shift—tax collection will be more continuous throughout the year, reducing surprise bills. Begin planning ahead to understand your tax position, prepare finances accordingly, and ensure your PAYE code reflects your income accurately.
**Example**: Sofia works as a part-time employee (PAYE) and also earns £30,000/year as a freelance writer. Under the new system, instead of a single large bill in January following the tax year, Sofia’s PAYE deductions would be increased throughout the year (via her tax code) to collect a portion of the estimated liability. Any remaining liability still needs to be settled after filing her return. Showing accurate freelance income estimates will mean her deductions are more precise and avoid overpaying or underpaying substantially.
**Planning tip**: Use accounting software now to keep freelance/self-employed income up to date quarterly. That helps when next year’s forecasts are made by HMRC.