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HMRC Quarterly Tax Payments

Jul 29, 2026

HMRC quarterly tax payments I Aspreys Back to Latest News & Blog

Two significant consultations have recently been announced by HMRC, and both could have an impact on how and when you pay your tax. Here’s what you need to know:

Sole traders and landlords could soon start paying tax quarterly

If you’re a sole trader or landlord earning over £50,000, you’re already within the Making Tax Digital (MTD) regime as of 6 April 2026. This means you’re already required to report your income and expenses quarterly so HMRC can calculate your profit throughout the year.

HMRC has always maintained that MTD is about reporting, not speeding up payments. However, a new consultation suggests that is about to change.

If the consultation is approved, as is likely

MTD eligible sole traders and landlords will need to pay their tax quarterly, or possibly even monthly, rather than in the traditional annual payment.

For a well-run business with healthy cash flow, this is manageable. But if cash flow is already a challenge, this could add significant financial pressure.

There is also a real possibility that reporting could move from quarterly to monthly, and if that happens, monthly payments are likely to follow.

VAT and PAYE could become payable by direct debit only

Currently, you can choose how you pay your VAT and PAYE, by direct debit or card payment. This consultation proposes removing that choice entirely.

Under the proposed changes, direct debit would become the only option, meaning HMRC would collect payment automatically rather than waiting for you to pay.

Both changes point in the same direction: HMRC is closing the gap between when tax is due and when it’s collected and taking greater control over the timing of payments.

These are still consultations, but the direction is clear and it’s worth being aware of what may well be coming soon. There are some things to consider NOW which can not only prepare you for this change, but help you grow your business, such as:

  • Make sure your bookkeeping and records are up to date.
  • Review your cash flow so you’re prepared for more frequent payments.

At Aspreys, we can help you with all this and we will of course keep you updated as to the outcome of these consultations and update you as soon as more details are confirmed.

In the meantime, if you have any questions at all, big or small, do call us. We’d love to hear from you

[email protected] | 01932 485 325 | aspreysuk.com

 

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