Overview
- HM Revenue and Customs launched a public consultation in July 2026 on proposals to forecast a taxpayer’s next annual Self Assessment liability from their previous return and split it into 12 monthly payments.
- HMRC says the change would not raise total tax owed for a year and that refunds or adjustments would be made when actual income differs from the forecast.
- Tax advisers and representative bodies warn the plan could harm people with seasonal or irregular incomes by causing cash‑flow problems, unwanted overpayments and extra administrative work.
- Media reports have suggested an illustrative start date of April 2030 if the policy is adopted, but that timing is not confirmed and the government has not set which income threshold would apply.
- The proposal forms part of a broader push tied to Making Tax Digital and efforts to reduce tax debt and the UK tax gap, with digital reporting thresholds due to fall in coming years and HMRC seeking to collect tax closer to when income is earned.