Have your say on the Timely Payments in Income Tax Self Assessment consultation

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<div class="SCXW160903562 BCX0"><div class="OutlineElement Ltr SCXW160903562 BCX0"><div class="SCXW207512169 BCX0"><div class="OutlineElement Ltr SCXW207512169 BCX0">I am writing as a freelance worker and member of the trade union Bectu to register my views on the government's Timely Payment consultation. I strongly oppose any approach that reduces flexibility for taxpayers with fluctuating incomes or risks requiring workers to pay tax based on earnings they have not yet received. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Any changes to the way Income Tax Self-Assessment is paid must recognise the realities of freelance work in the creative industries and ensure that workers with irregular incomes are not disadvantaged. It is vital that any new system is flexible, supports financial stability, and reflects the way creative freelancers actually work. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Freelancers are the backbone of the UK’s world leading creative industries. Creative sector work is characterised by short-term contracts, project-based work and multiple income streams. Workers frequently move between PAYE employment, self-employment, limited company arrangements and periods without work, often within the same tax year. Bectu's 2025 Big Survey found that almost half of respondents identified as freelancers, while only one in five workers reported feeling secure in their work, falling to just 13% among freelancers. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">ITSA Payments Through PAYE </div><div class="OutlineElement Ltr SCXW207512169 BCX0">More regular payment of tax may benefit workers with stable earnings by reducing large year-end liabilities. However, many creative workers do not have predictable income patterns. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Bectu members frequently combine PAYE and self-employed work, move between different employment statuses and experience periods of unemployment between contracts. Eligibility for payment through PAYE should therefore not assume continuous employment. Workers must be able to move easily between PAYE collection and alternative payment arrangements without creating additional complexity or financial pressure. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Forecasting future liabilities presents particular challenges in the creative industries. Recent disruptions in film and television production have demonstrated how quickly income can change. Bectu's 2025 survey found that 43% of screen industry workers were not currently working and only 16% reported their employment had fully recovered following recent industry disruption.  </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Even in good times, income is often highly volatile. Periods of intensive work may be followed by weeks or months without earnings. Bectu's research found that 66% of creative workers are struggling financially, 31% of freelancers have no savings, and more than one-third have experienced cashflow difficulties because of late payment. Any reform must therefore prioritise flexibility, recognise income volatility and avoid creating hardship for workers with irregular earnings. Historic earnings data alone is unlikely to provide an accurate basis for forecasting future tax liabilities. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">While HMRC may wish to use Making Tax Digital (MTD) data to support forecasting, taxpayers and agents must retain the ability to update forecasts quickly and easily when circumstances change. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Strong safeguards will be essential. Workers should be able to reduce or pause forecast payments where income falls unexpectedly and should not be penalised where reasonable forecasts later prove inaccurate. Particular consideration should be given to: </div><div class="ListContainerWrapper SCXW207512169 BCX0"><ul class="BulletListStyle1 SCXW207512169 BCX0" role="list"><li class="OutlineElement Ltr SCXW207512169 BCX0" role="listitem" aria-setsize="-1" data-leveltext="" data-font="Symbol" data-listid="13" data-list-defn-props="{" data-aria-posinset="1" data-aria-level="1">Freelancers and workers with highly variable earnings. </li></ul></div><div class="ListContainerWrapper SCXW207512169 BCX0"><ul class="BulletListStyle1 SCXW207512169 BCX0" role="list"><li class="OutlineElement Ltr SCXW207512169 BCX0" role="listitem" aria-setsize="-1" data-leveltext="" data-font="Symbol" data-listid="13" data-list-defn-props="{" data-aria-posinset="2" data-aria-level="1">Individuals combining PAYE and self-employed income. </li></ul></div><div class="ListContainerWrapper SCXW207512169 BCX0"><ul class="BulletListStyle1 SCXW207512169 BCX0" role="list"><li class="OutlineElement Ltr SCXW207512169 BCX0" role="listitem" aria-setsize="-1" data-leveltext="" data-font="Symbol" data-listid="13" data-list-defn-props="{" data-aria-posinset="3" data-aria-level="1">Workers moving in and out of employment between projects. </li></ul></div><div class="ListContainerWrapper SCXW207512169 BCX0"><ul class="BulletListStyle1 SCXW207512169 BCX0" role="list"><li class="OutlineElement Ltr SCXW207512169 BCX0" role="listitem" aria-setsize="-1" data-leveltext="" data-font="Symbol" data-listid="13" data-list-defn-props="{" data-aria-posinset="4" data-aria-level="1">Those experiencing delayed payments from clients. </li></ul></div><div class="OutlineElement Ltr SCXW207512169 BCX0">The government should also ensure payroll systems and guidance adequately support employers and payroll operators in sectors where short-term employment is common. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Reform of Payments on Account </div><div class="OutlineElement Ltr SCXW207512169 BCX0">More frequent payments may help some taxpayers budget more effectively. However, for workers with irregular earnings, they may create additional cashflow pressures unless sufficient flexibility is built into the system. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">A key principle should be the ability to respond quickly to changing circumstances. Creative workers may experience cancelled contracts, delayed productions, postponed commissions or sudden reductions in work. Taxpayers should therefore be able to amend forecasts, reduce payments or access temporary payment holidays without excessive administrative burdens or penalties. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Practical support should include forecasting tools, advance notifications of liabilities, and accessible guidance for taxpayers and agents. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Support should also be available through non-digital channels. Particular attention should be given to taxpayers with fluctuating incomes, disabled workers, older freelancers and those with limited digital confidence. </div></div><div class="OutlineElement Ltr SCXW207512169 BCX0">Transition, Choice and Additional Support </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Implementation should be gradual and carefully managed. Taxpayers should not face a situation where they are simultaneously paying liabilities arising under the existing system while making payments under a new one. For workers on irregular incomes, this could create significant financial strain. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Given the scale of wider tax administration changes, including Making Tax Digital for Income Tax, a phased transition with clear communication and appropriate easements will be essential. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Creative workers often face periods of intensive work with limited time to deal with administration. Additional reporting and payment requirements should not result in disproportionate penalties where taxpayers miss deadlines as a result of atypical working patterns. Clear communications, proportionate penalty regimes and flexible processes will be vital. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Voluntary pre-payment options may be useful for some taxpayers but should remain entirely optional. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Bectu also urges caution regarding any reduction in the Payments on Account threshold. Lower-income workers and those with variable earnings are often least able to absorb additional financial pressures. </div><div class="OutlineElement Ltr SCXW207512169 BCX0">Finally, flexibility and taxpayer choice should remain central to any reforms. Given the diversity of working arrangements across the creative industries, taxpayers who combine PAYE and Self Assessment income should be able to choose the payment mechanism that best reflects their circumstances, whether through PAYE deductions, Payments on Account or Direct Debit arrangements. </div></div></div>

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