Sole trader? HMRC needs your views on its new tax proposals NOW!

Last Updated on 18 July 2026

HMRC have snuck out a consultation a few weeks ago just as you head off on your hols.

I’ve only just spotted it and big thanks to the finance journalist Iona Bain for posting about it on LinkedIn.

It’s almost as if HMRC doesn’t want us to read what’s being proposed.

It’s called ‘timely payments of income tax self assessment’, but what it’s really about is paying income tax sooner than at present.

This was always a possibility once Making Tax Digital quarterly reporting came in.

But this set of proposals could ratchet up the process of actually paying the tax, not just the reporting process.

Key questions

• How would you feel about paying income tax every three months or even monthly, rather than once or twice a year?
• Are you in the kind of work where you can afford to pay tax before you receive the income?
• Would you be happy with a change to the current ‘payment on account’ system?

The consultation sets out a load of questions which you can answer specifically.

You can read the consultation here > (opens in new tab)

It needs responses by 4th August here (or click on the image below):

I think it’s important that sole trader freelancers and those with a mix of PAYE and sole trader income are able to point out to HMRC what it’s like to live with delayed income.

We all want to pay our taxes, but is it reasonable to do that before the income actually arrives?

Maybe they should wait until after the suggested changes to invoice payments are in place.

Let’s get them to do joined up thinking here, and not put the tax cart before the payment horse.

Posted on 17 July 2026