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Consultation response: Timely payments for Self-Assessment

22 July, 2026

The ATT has responded to the HMRC consultation on implementing more timely payment for Self-Assessment taxpayers ('the Consultation'). 

Under current arrangements, a delay of up to 22 months can arise between income being generated and the taxpayer having to pay the resulting tax to HMRC. 

The Consultation explores moving to in-year payment arrangements from April 2029, both for taxpayers with ITSA and PAYE income, but also for those with ITSA income only, or with insufficient PAYE income to collect their ITSA liability through payroll.

In our response, the ATT has urged HMRC not to proceed with the reforms as proposed - either for taxpayers with PAYE income as well as ITSA sources, or for those with purely or predominantly ITSA income. 

Our primary concerns include:

 

  • Introducing significant complexity, when the vast majority of ITSA payments are already made on time
  • Unrealistic expectations and administrative burdens on taxpayers, PAYE operators, agents and HMRC
  • The age, reliability and quality of data proposed to be used for in-year collection of ITSA liabilities
  • Loss of ability for taxpayers to maintain confidentiality over their ITSA tax affairs from their employer
  • Complexity and potential for confusion and inaccuracy where ITSA and/or PAYE income sources fluctuate 

We recommend a number of alternative ways of achieving the policy objective, the simplest of which could be to maintain the existing Payment on Account system, but move to more frequent instalments - for instance quarterly rather than six-monthly. 

You can read the full ATT response to the Consultation here.