New tax rules coming for self-employed UK workers
Key Points
- Self-employed UK workers face changes to how and when they pay tax under new government proposals.
- A consultation launched on 23 June 2026 sets out plans for more frequent, in-year Self Assessment payments.
- Self Assessment customers with PAYE income would pay more of their forecasted liabilities in-year through PAYE from April 2029.
- The government is also consulting on reforming Payments on Account for other Self Assessment taxpayers.
- The Treasury said smaller, regular payments would help reduce tax debt and avoid unexpected bills.
Self-employed workers face changes to how and when they pay tax under government proposals to move Income Tax Self Assessment towards more frequent, in-year payments.
The government launched a consultation on 23 June 2026 on implementing more timely payments in Income Tax Self Assessment, first announced at Budget 2025.
Under the plans, Self Assessment customers who also have Pay as You Earn income would be required to pay more of their forecasted Self Assessment liabilities in-year through PAYE from April 2029.
The government is also consulting on the potential for more timely payments for other Self Assessment taxpayers by reforming Payments on Account, the system under which taxpayers make advance payments towards their bill.
The Treasury said spreading tax payments through the year into smaller, regular payments would help reduce tax debt and avoid taxpayers facing larger, infrequent and sometimes unexpected bills.
The reform is part of a wider package of measures the government said is designed to simplify and modernise the tax system.
Other announcements include a review of the flat rates employers can use to reimburse staff for travel and meal costs, a call for evidence on PAYE Settlement Agreements, and a move to replace paper-based VAT processes with new digital channels.
The government also confirmed a consultation on a new First Time Buyer ISA, a simpler savings product that will be offered in place of the Lifetime ISA.
The consultation on more timely payments is now open.
