For self-employed musicians, whose incomes are irregular and unpredictable, the proposals could create significant difficulties, particularly relating to cashflow. Photo: Shutterstock.
HM Revenue & Customs (HMRC) has launched a consultation on proposals to introduce more "timely" payment of Income Tax. Under plans announced in the 2025 budget, self-employed taxpayers who also have sufficient PAYE income from employment or pensions would be required to make payments towards their estimated self-assessment tax bill through their PAYE tax code from April 2029.
The Government argues that the reforms would help taxpayers budget more effectively and reduce late payments. However, for self-employed musicians whose incomes are irregular and unpredictable, the proposals could create significant difficulties, particularly relating to cashflow.
Why musicians should be concerned
Many musicians combine self-employed earnings from performances, teaching, recording, composition or session work with PAYE income from employment, schools, colleges, orchestras or other engagements.
Under the proposed system, HMRC would estimate a taxpayer's future self-assessment liability using their most recently filed tax return and adjust their PAYE tax code to collect tax in equal instalments throughout the year.
While this approach may work for individuals with stable earnings, musicians' incomes often fluctuate considerably from year to year. Touring schedules, freelance contracts, festival work, recording projects and teaching commitments can vary dramatically. A musician experiencing a quieter year could therefore find tax being deducted based on higher earnings from previous years, potentially reducing disposable income at a time when work is already scarce.
Although overpayments would ultimately be reconciled through the self-assessment process, this could leave musicians effectively providing HMRC with an interest-free loan until their position is corrected.
Have your say
The Government consultation end on 4 August 2026, and we would encourage members who feel they are likely to be affected by the proposed changes to respond to the consultation setting out their concerns.
Find out more and respond to the consultation to have your say.