HMRC Considering Collecting Tax Earlier

HMRC is considering changing the timing of the collection of income tax. The proposed change will apply to those taxpayers who are under the Self-Assessment or Making Tax Digital tax systems, who are also subject to PAYE on earnings.

The proposal is to amend the tax codes of such individuals, so as to collect tax on the estimated non-PAYE income through the payroll. This does rely on HMRC’s ability to estimate, with a reasonable degree of accuracy, such indiviudals other income, before those individuals have actually received that income.