by Asim Abbas
12 November 2026 
Payments on account are changing: smaller, regular Self Assessment payments from April 2029
Payments on account are changing: smaller, regular Self Assessment payments from April 2029
The government plans to replace the twice-yearly payments on account with smaller, more regular payments from April 2029. If you pay a large January bill today, this will change how you budget.
- From April 2029, payments on account will become smaller, more regular payments during the tax year.
- Payments will be automated, for example by Direct Debit, or through PAYE if you have enough PAYE or pension income.
- They will still be based on last year’s tax, and you can update them online.
- The 31 January return deadline stays the same.
- 2029/30 is a transition year, so plan your cash flow now.
The plan was published in HMRC’s timely payments factsheet on 28 October 2026. It changes when you pay, not how much tax you owe.
Here is what is planned, who it affects, what stays the same and what you can do now.
What is changing?
According to HMRC’s timely payments factsheet, from April 2029 people who make payments on account will make smaller, more regular payments during the tax year in which they earn the income. The key points are:
- payments will be automated, for example by Direct Debit
- if you have enough PAYE or private pension income, you can choose to pay through PAYE instead
- payments will still be based on last year’s tax, and you can update them online if your circumstances change
- your tax return is still due by 31 January
- the change affects when you pay, not how much tax you owe
The government has not yet decided how often the payments will be made. More detail is promised in 2027.
How it works today
At the moment, you make two payments on account a year, usually each half of last year’s bill, in January and July, with a balancing payment the following January. HMRC points out that tax can currently be paid as late as 22 months after the income is earned. Our guide to reading your Self Assessment bill explains the current system with a worked example.
Who will it affect?
Around 12 million people file Self Assessment returns each year, and around 3 million make payments on account. The current exemptions are expected to stay: you do not make payments on account if last year’s tax was under £1,000, or if more than 80% was paid another way, such as through your tax code.
Estimate your tax bill
Use our free Self Assessment calculator to see what your payments might be.
The 2029/30 transition year
HMRC says that in 2029/30, final payments for the previous year will be made alongside the first payments under the new system. In other words, some people will pay for two years in a short period. That is the cash flow risk to plan for now, especially for sole traders, landlords and directors with large bills.
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179Why is the government doing this?
HMRC says the payments on account system is around 30 years old, and that regular payments will help people budget and avoid tax debt. It also brings the UK in line with countries such as the US, Australia, France, Germany and Canada.
How it fits with Making Tax Digital
The factsheet does not link the change to Making Tax Digital. But if you already send quarterly updates under MTD, you will have up-to-date figures, which should make it easier to keep regular payments accurate. See our Making Tax Digital guide.
What should you do now?
Nothing changes until April 2029, but it is worth building the habit now. Put money aside monthly for your tax, and keep payments on account realistic: if you reduce them and your bill is higher, HMRC charges interest. If you are behind with tax from earlier years, deal with it before the transition year adds pressure, and speak to us about a voluntary disclosure if income was missed.
What should I do next?
April 2029, with 2029/30 as the transition year.
Set aside tax each month so regular payments feel normal.
Up-to-date bookkeeping makes regular payments accurate.
We forecast your bills and set a monthly saving figure.
Frequently Asked Questions
When do payments on account change?
From April 2029, with 2029/30 as a transition year.
Will I pay more tax?
No. HMRC says the change affects when payments are made, not the amount of tax owed.
How often will I pay?
The government has not decided yet. More information is due in 2027.
Can I pay through PAYE?
If you have enough PAYE or private pension income, you will be able to choose to pay through PAYE.
Is the 31 January deadline changing?
No. Tax returns will still be due by 31 January each year.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Ali Imran
I’m Ali Imran, an accountant at Wingate Accountants. I help sole traders, landlords and directors get their returns filed early and accurately, without the last-minute panic.
