The changes form part of the Government\u2019s efforts to bring tax payments closer to when income is earned, reduce outstanding tax debts and narrow the gap between tax owed and tax collected. While ministers believe the system will help taxpayers manage their finances, concerns remain about its impact on people whose earnings fluctuate.<\/p>\n\n\n\n
Under the existing Self Assessment system, many taxpayers make two Payments <\/strong>on Account each year, with a balancing payment due the following January. This means income tax can be paid up to 22 months after the income was earned.<\/p>\n\n\n\n According to HMRC\u2019s consultation response<\/a>, published on 28 October 2026, approximately 12 million people submit Income Tax Self Assessment returns, including around seven million who also receive income taxed through Pay As You Earn (PAYE).<\/p>\n\n\n\n The Government initially proposed requiring taxpayers with sufficient PAYE income to make regular deductions through their employment earnings. Around 2.1 million people were expected to fall within the scope of that proposal.<\/p>\n\n\n\n Following consultation, ministers have changed their approach. Automated payments made directly to HMRC, potentially through Direct Debit<\/strong>, will become the default method instead.<\/p>\n\n\n\n