Tax Planning
Preparing for Timely Payments via PAYE from April 2029: What Self-Assessment Taxpayers Need to Know
UK taxpayers with both PAYE and Self-Assessment income face new payment timing rules starting April 2029—learn what’s changing and how to plan ahead now.
By NomadicTax Research Team • 5-8 min read • September 2, 2026
## What’s Changing?
From **April 2029**, taxpayers who receive income through **Pay As You Earn (PAYE)**—such as salaries or pensions—and also file a **Self-Assessment tax return** will be required to pay much of their Self-Assessment liability *during* the tax year via their PAYE code. Currently, such taxpayers often wait up to 22 months after income is earned before paying all their Self-Assessment tax. ([gov.uk](https://www.gov.uk/government/publications/fiscal-events-2026-factsheets/timely-payments-in-income-tax-self-assessment-factsheet?utm_source=openai))
The policy was announced in HMRC’s *Fiscal Events 2026* package under Tax Update 2026, as part of broader reforms aimed at “simplification, modernisation and fairness” in UK tax administration. ([gov.uk](https://www.gov.uk/government/collections/taxupdate-2026-simplification-modernisation-and-fairness?utm_source=openai))
## Who Will Be Affected?
- People with both PAYE income and Self-Assessment-only income—e.g. someone employed part-time + freelance work.
- Those whose tax liabilities don’t fall neatly into the existing **Payments on Account** system.
- Importantly, **no one will pay more tax in total**; the reforms change *the timing*, not the *amount*. ([gov.uk](https://www.gov.uk/government/publications/fiscal-events-2026-factsheets/timely-payments-in-income-tax-self-assessment-factsheet?utm_source=openai))
## Why the Change?
- To reduce large, unexpected bills that many find hard to budget. Around **1.1 million** Payments on Account were missed in January 2025, and 75% of those led to tax debt. ([gov.uk](https://www.gov.uk/government/publications/fiscal-events-2026-factsheets/timely-payments-in-income-tax-self-assessment-factsheet?utm_source=openai))
- To bring the UK in line with other countries where tax is collected more evenly throughout the year, reducing accrual delays. ([gov.uk](https://www.gov.uk/government/publications/fiscal-events-2026-factsheets/timely-payments-in-income-tax-self-assessment-factsheet?utm_source=openai))
## Key Features & Safeguards
| Feature | Details |
|---|---|
| Forecasting | HMRC will use your most recent tax return to estimate the Self-Assessment tax due, then add it into your PAYE code. |
| Flexibility | If your income is likely to differ materially, you’ll have options to make in-year forecasts or payments to adjust. |
| Transition support | HMRC will provide guidance, etc., including for taxpayers with complex or fluctuating incomes. ([gov.uk](https://www.gov.uk/government/publications/fiscal-events-2026-factsheets/timely-payments-in-income-tax-self-assessment-factsheet?utm_source=openai)) |
## Practical Steps You Should Take Now
1. **Review your last Self-Assessment**: Understand how much of your liability could be folded into your PAYE code.
2. **Track your income sources**: Keep solid records so your estimates will be accurate and avoid surprises.
3. **Forecast ahead**: If you expect income to be higher or lower, plan accordingly; options to submit estimates will be important.
4. **Use HMRC guidance early**: HMRC is consulting this year; responses and draft guidance will help frame what’s allowed and expected. ([gov.uk](https://www.gov.uk/government/publications/fiscal-events-2026-factsheets/timely-payments-in-income-tax-self-assessment-factsheet?utm_source=openai))
## Implications for Tax Planning
- You may want to adjust withholdings, especially if you have seasonal freelancing or variable income.
- Investments that generate irregular income (dividends, capital gains) need forwarding planning.
- Monitor penalty exposure if you fail to forecast accurately or miss payments. The system is intended to be more forgiving, but accuracy will still matter.
**Example:**
Sarah works full-time under PAYE and does freelance graphic design. Last year, she owed £4,000 in Self-Assessment tax. Under the new rules, HMRC may estimate that portion and spread it across her PAYE code starting in the current tax year—perhaps adding £80 to her monthly PAYE deductions—so that by April 2029 she has effectively paid most of it already.
## Takeaway
While you won’t be paying more tax overall, you *will* be paying sooner—frequently through your monthly PAYE deductions. Start gathering records, tracking all income, and staying alert for guidance. Being proactive will help you avoid cashflow surprises.