{"id":128557,"date":"2026-11-11T07:00:00","date_gmt":"2026-11-11T07:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=128557"},"modified":"2026-11-10T22:44:16","modified_gmt":"2026-11-10T22:44:16","slug":"hmrcs-2029-tax-overhaul-could-hit-millions","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/hmrcs-2029-tax-overhaul-could-hit-millions\/","title":{"rendered":"HMRC\u2019s 2029 Tax Overhaul Could Hit Millions of Workers Where It Hurts Most"},"content":{"rendered":"\n

The changes could affect up to 3.6 million people<\/strong> and have raised concerns about financial pressure during the transition. Although the Government says taxpayers will not owe more overall, business organisations warn that paying earlier could leave sole traders struggling to manage their cash flow.<\/p>\n\n\n\n

Why HMRC Wants Self-Employed Workers To Pay Tax Earlier<\/strong><\/h2>\n\n\n\n

Under the current system, self-employed workers submit an annual Self Assessment tax return, with outstanding liabilities generally due by 31 January. Those whose tax bills exceed \u00a31,000, and who have not already paid at least 80%<\/strong> of their tax at source, must usually make payments on account.<\/p>\n\n\n\n

These advance payments are divided into two equal instalments, due in January and July, based on the previous year’s tax liability. A subsequent balancing payment or refund accounts for any difference once the final return has been submitted.<\/p>\n\n\n\n

According to Which?<\/a>, around 30% of the 12 million people filing Self Assessment returns currently make payments on account, potentially placing 3.6 million taxpayers within the scope of the proposed changes.<\/p>\n\n\n\n

The existing arrangements can create a considerable gap <\/strong>between earning income and paying tax. The first advance payment may fall 10 months into the tax year, while the final liability can remain unsettled for up to 22 months.<\/p>\n\n\n\n

From April 2029, ministers intend to introduce more frequent payments throughout the year, although the precise timetable has not been confirmed. The Treasury forecasts that the change will bring forward approximately \u00a31.3 billion in its first year, rising to \u00a31.8 billion two years later.<\/p>\n\n\n\n

The proposals follow the introduction of Making Tax Digital requirements in April 2026 for sole traders<\/strong> and landlords <\/strong>with qualifying income exceeding \u00a350,000. These rules require quarterly income and expenditure updates alongside a final year-end declaration, while retaining the existing January payment deadline.<\/p>\n\n\n\n

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From April 2027, several tax changes could affect how UK professionals, savers and landlords plan their money.

The figures shown cover announced changes affecting property income, savings income, the cash ISA limit for under-65s and the inheritance-tax treatment of unused\u2026 pic.twitter.com\/Pzvg5rcryb<\/a><\/p>— Rahim Bah (@RahimBah01) November 9, 2026<\/a><\/blockquote>