Tax Planning
Strategic Self Assessment Planning for the New ITSA Payment Timings
With UK tax reforms set to change how and when Self Assessment payments are made from April 2029, advanced planning is more crucial than ever for PAYE earners and self-employed individuals alike.
By NomadicTax Research Team • 5-8 min read • August 10, 2026
## Overview of the New ITSA Payment Timing Reforms
In the Budget 2025 framework, UK tax policy announced significant reforms to Income Tax Self Assessment (ITSA) payments, with new payment timings commencing **April 2029**. These changes include two core measures:
- Individuals with sufficient PAYE income will begin paying forecasted ITSA liabilities **in-year via PAYE** rather than through future lump sums. ([gov.uk](https://www.gov.uk/government/consultations/timely-payments-in-income-tax-self-assessment/timely-payments-in-income-tax-self-assessment-itsa?utm_source=openai))
- All other ITSA taxpayers (e.g. self-employed without PAYE jobs, or income solely from self-assessment) are under review for similarly *more timely payment* treatment. ([gov.uk](https://www.gov.uk/government/consultations/timely-payments-in-income-tax-self-assessment/timely-payments-in-income-tax-self-assessment-itsa?utm_source=openai))
## What Taxpayers Should Be Doing Now
Here are proactive steps you can take today to adapt and mitigate risks:
### 1. Forecast Income Precisely
Accurate forecasting will be essential when your ITSA liabilities are estimated in advance. If you’re both employed (with PAYE) *and* self-employed, keep separate records so you can project your income and tax due for both streams.
**Example**: Jane is employed and also runs a side gig. In early tax year 2028-29 she estimates her non-PAYE profit at £15,000. Using past returns, she forecasts tax on that profit and schedules PAYE adjustments accordingly.
### 2. Budget Cash Flow for Possible Higher In-Year Deductions
PAYE adjustments could increase monthly deductions. Ensuring you have buffer cash flow or using Budget Payment Plans could prevent unexpected financial stress.
### 3. Monitor HMRC and Consultations
Stakeholders and representative groups are being consulted. You can contribute feedback, particularly if your income is irregular, seasonal, or complex. ([gov.uk](https://www.gov.uk/government/consultations/timely-payments-in-income-tax-self-assessment/timely-payments-in-income-tax-self-assessment-itsa?utm_source=openai))
### 4. Safeguards and Transitional Measures
Watch for published safeguards: HMRC is considering grant periods, thresholds, or special provisions for those severely affected (e.g. seasonal income earners). These will matter greatly in your planning.
## Example Scenarios
| Taxpayer Type | Current Practice | Proposed New Practice from April 2029 | Implications & Strategies |
|----------------------|-------------------------|-------------------------------|-------------------------------|
| **PAYE + self-employment** | File SA after year end; two Payments on Account (POAs) | Forecasted tax through PAYE each pay period | Forecast-based deductions; more regular payments; ensure employment with correct PAYE coding |
| **Self-employed only / minimal PAYE** | Usually twice-yearly POAs + balancing payment | Under review; may remain POA-based but earlier payments likely | Keep detailed income records; consider spreading income or expenses; plan for instalments |
## Action Steps to Take Before 2029
1. **Keep past year’s accounts in excellent order**. Historical Self Assessment returns will likely form the basis of forecasting algorithms.
2. **Engage a tax adviser or agent** now, to assess how your specific income profile could be impacted. Economies of scale for those using agents.
3. **Model your tax liability under different scenarios** – e.g. modest growth, irregular income – to see if forecasts need adjusting.
4. **Explore tax reliefs you can accelerate** (capital allowances, pension contributions, charitable giving) to smooth taxable profit profiles.
5. **Plan savings and cash reserves** to cover potential higher PAYE or advance payments.
## Key Takeaways
- The move to *more timely payment* brings greater certainty and reduces tax debt risk.
- Adequate forecasting, financial discipline and early engagement are vital.
- Be prepared: April 2029 is closer than you think.
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**Category**: Tax Planning
**TaxHome**: UK
**Author**: NomadicTax Research Team
**ReadTime**: "5-8 min"
**Published**: true