HMRC recently launched a consultation on the way in which Income Tax Self Assessment (ITSA) taxpayers fulfil their tax obligations following the government’s announcement at Budget 2025 on changes to the timing of payments in ITSA from April 2029.  

The consultation covers how reforms for ITSA taxpayers with Pay as You Earn (PAYE) income might be implemented and explores the potential for more timely payment for other ITSA taxpayers.

In summary, the proposals involve a change from Payment on Account, twice yearly, to a monthly remit based on the previous year’s forecast, which will impact our members who file ITSA and earn through employment.  

The Society of Authors has responded to the consultation to ensure that the interests of authors are properly considered.   

Writing incomes have continued to decline in real terms and fewer authors are able to rely solely on writing for their livelihood, with many maintaining portfolio careers, combining multiple income streams.  

Professional writers, illustrators and literary translators face increasingly difficult economic conditions: declining incomes, rapidly changing publishing and media markets, and the unregulated deployment of new technologies present significant challenges to the long-term sustainability of authorship as a profession. 

Creative income is unpredictable and often arrives years after the work is completed.  Creators might spend months or years producing work before receiving any income.   

The SoA does not believe that adequate safeguards can be put in place to protect authors, and we oppose the proposal to introduce mandatory, more frequent tax collection from ITSA-only taxpayers.  

Basing payments on past earnings could easily result in authors paying too much tax and being required to pay tax long before they receive the income. This will inevitably create cash-flow problems for a profession which characteristically has little financial buffer and will impose yet further administrative burdens on authors in addition to those created by the introduction of Making Tax Digital (MTD) changes which commenced this year. 

The Society of Authors response covered the following points:  

1. Author incomes are inherently unpredictable and unsuitable for forecasting-based tax collection. Earnings arise from commissions, advances, royalties, Public Lending Right, licensing and other rights income, which are mostly paid bi-annually or infrequently and intermittently. As a result, using the previous year’s income to estimate current tax liabilities is unlikely to produce accurate forecasts. It is more likely authors will end up overpaying on income tax. 
2. The proposals risk significant financial hardship for many authors. Excessive deductions through PAYE based on inaccurate forecasts could reduce take-home pay below the minimum level needed to meet essential living costs. Many authors already supplement their income from creative work with low-paid employment, and many do not have the cash reserves to absorb unnecessary overpayments. 
3. These reforms would increase administrative burdens rather than simplify compliance. Authors would need  to monitor their income continually, review forecasts and notify HMRC of changes. Many cannot afford professional tax advice, meaning the responsibility and complexity of managing this system would fall directly on taxpayers. 
4. Any reform that affects ITSA-only taxpayers should be voluntary and supported by strong safeguards. Taxpayers must be able to amend forecasts easily and without penalty. Deductions through PAYE should be capped to prevent hardship, privacy must be protected, overpayments repaid promptly (and within 14 days before the next monthly payment falls due) and be implemented with a suitably long transition period provided to avoid severe cashflow pressures. 

The result of the proposed changes, if implemented, will be that the business of authorship becomes even more difficult in an already challenging environment. Many authors will feel that a career as an author is no longer a viable option and publishing will take a backwards step in terms of accessibility and diversity. 

We will continue to raise awareness of the risk of these changes and work with our creative union partners who also submitted responses rejecting the proposal.  

If you need advice from the Society of Authors, please contact us. Accountants HW Fisher also provide a free tax helpline for our members – log in to the members area of our website for more information. Or you can find free advice on financial matters via TaxAid or Citizens Advice.  

If you’d like to get in touch with our policy team email publicaffairs@societyofauthors.org.