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Self Assessment Payments on Account to Become More Frequent from April 2029: What Sole Traders and Partners Need to Know

The government confirmed on 28 October 2026 that from April 2029 people who make Self Assessment payments on account will pay tax more regularly during the year, with automated payments such as Direct Debit as the default. How often they will pay has not yet been decided.

By Entrepreneur Group · Published 31 October 2026

From April 2029, sole traders, partners and other people who make Self Assessment payments on account will have to pay their tax more regularly during the year, instead of in two large instalments. The government confirmed the change alongside the Autumn Budget on 28 October 2026, with automated payments such as Direct Debit as the default. It has not yet said how often payments will be due.

For anyone running a business on their own account, this is a cash flow change rather than a tax rise, but it will change when money leaves the business bank account.

How payments on account work now

Under the current rules, set out on GOV.UK, payments on account are advance payments towards your next tax bill, including Class 4 National Insurance for the self-employed. Each payment is half of the previous year's tax bill, and they are due by 31 January and 31 July. For example, a £3,000 bill last year means two payments of £1,500.

You do not have to make them if last year's bill was under £1,000, or if more than 80% of your tax was paid outside Self Assessment, for example through your tax code.

What the government has decided

HMRC consulted on "timely payments" between 23 June and 4 August 2026 and received 3,630 responses. Its summary of responses, published on 28 October 2026, sets out the decisions:

• Automated in-year payments become the default. The government will "make automated in-year payments (such as through Direct Debit) the default".
• PAYE becomes optional. The Budget 2025 plan was to collect Self Assessment tax through PAYE for people with enough PAYE income. Now, "those with sufficient PAYE income will have the choice to opt-in" instead.
• The change covers everyone who makes payments on account. The government will "extend timely payments to the wider ITSA population who are liable to make Payments on Account".
• Start date. "The changes will begin from April 2029."
• New tools first. HMRC will offer digital tools to estimate your liability, make voluntary payments and track progress, and says this "will become available in 2028".

The £1,000 threshold and the 80% at-source exemption remain the current rules, and the response does not announce a change to them.

What is still undecided

The response says the government "will set out further detail next year" on the frequency and timing of payments, safeguards for people in financial difficulty, penalties and interest, support for taxpayers and how the transition will work.

The original consultation said about 2.5 million of the 9.5 million people who file a return without PAYE collection currently make payments on account, and it floated monthly or quarterly payments as examples. The summary of responses says respondents who were open to reform generally favoured quarterly payments, but the government has not confirmed any frequency.

Business and Accountancy Daily reports that the Treasury estimates the change will raise £1.3 billion in 2029-30, which reflects tax being paid earlier rather than an increase in tax rates. Deloitte flags that more frequent payments could create cash flow problems where income is uneven or received late, and that repeated forecasting during the year adds complexity.

How to prepare

This section is editorial guidance, not tax advice.

• Look at your cash flow pattern. If your income is seasonal or arrives in large, irregular payments, model how quarterly or monthly tax payments would land against it.
• Set money aside as you earn. Putting a share of each invoice into a separate tax account now makes any switch to regular payments easier.
• Watch for the 2027 detail. The frequency, penalties and transition rules will decide how much this affects you, so check for HMRC's next update.
• Consider how this fits with Making Tax Digital. Sole traders and landlords with income over £30,000 must use Making Tax Digital for Income Tax from April 2027, which already means quarterly updates to HMRC.
• Talk to your accountant if you have both employment and self-employed income, as the PAYE opt-in may suit some people.

Frequently asked questions

When will Self Assessment payments on account change?

The changes will begin from April 2029. HMRC says its new tools to estimate your bill and make voluntary payments will be available in 2028.

Will payments on account be monthly or quarterly?

The government has not decided. It will set out the frequency and timing of payments in 2027, and respondents to the consultation who were open to change generally preferred quarterly payments.

Will I have to pay Self Assessment tax through PAYE?

No. The government dropped the plan to collect it through PAYE by default, and people with enough PAYE income will instead be able to opt in.

Sources

1. HMRC: Timely payments in Income Tax Self Assessment, summary of responses (28 October 2026) (reviewed 31 October 2026)
2. HMRC: Timely payments in Income Tax Self Assessment consultation (23 June 2026) (reviewed 31 October 2026)
3. GOV.UK: Understand your Self Assessment tax bill, payments on account (reviewed 31 October 2026)
4. Business and Accountancy Daily: Budget 2026, LLP partners hardest hit by self assessment payment shake-up (30 October 2026) (reviewed 31 October 2026)
5. Deloitte Taxscape: More timely payments for Self Assessment (Budget 2026) (reviewed 31 October 2026)