Tax Collection From April 2029

In order to speed up the payment of  income tax, HMRC have proposed that they will collect income tax on other income (eg self employment) through tax codes for those having income paid under PAYE. The chnage is planned to occur in the 2029/30 tax year.

This would mean that a retired person, having a pension paid through PAYE system, who was also self employed, would have the tax on the self employment , based on HMRC’s estimate of that income, collected through their tax code.