Government confirms timely payments will go ahead

Commenting on the timely payments announcement in today’s Budget, Rachel McEleney, tax director at Deloitte UK, said:

“The government will proceed with plans to introduce more timely payments for Income Tax Self Assessment from April 2029. Under the proposals, taxpayers who have tax liabilities on income that is not subject to PAYE will need to pay some or all of their estimated liability through more frequent in-year payments. 

“However, these proposals may result in a number of taxpayers having to pay tax liabilities before the income has been received. For example, part of the tax on income received in the final month of the tax year will be due in the first month of the tax year. This could be problematic for taxpayers with fluctuating income, such as farmers and other seasonal traders, as well as those who receive income annually rather than monthly or quarterly. Requiring payments based on forecasts could therefore create significant cash-flow problems. The government is proceeding with this in the hope that it will reduce the tax gap but, acknowledging the difficulties that this could create, will consult with stakeholders on how to ease its impact.”

ENDS

Note to editors

Deloitte spokespeople

Deloitte has a range of spokespeople available to comment on today’s Budget. They can be reached on 02920 927541 or one of the following numbers: 

• Amanda Tickel – head of tax and trade policy (+44 7920 270964)
• Debo De – chief economist (+44 7887 629107)
• Rachel McEleney – personal tax (+44 7774 337581)
• Alison Lobb – corporate tax (+44 7774 337581)
• Michael Nicolaides – employment tax (+44 7586 511104)
• Toby Price – stamp duty (+44 7824 895798)
• Andrew Clarke – VAT (+44 7887 629107)
• Chris Baldwin – business rates (+44 7785 682226)
• Ed Roddis – public sector (+44 7785 682226)
• Peter Johnson – FS/bank tax (+44 7586 511104)
• Annis Lampard – private tax (+44 7824 895798)
• Richard Bray – Places (+447990434703)
• Ian Goodsell – Private client (+447990434703)

About Deloitte

In this press release references to "Deloitte" are references to Deloitte in the United Kingdom. The information contained in this press release is correct at the time of going to press. 

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