Workers face paying tax on income they have not earned yet under plans announced in the Budget.
Last month the Government revealed a significant change to income tax that went largely unnoticed.
From April 2029, employees with side hustles will be required to pay tax on their self-employment earnings throughout the year via their PAYE tax code, according to documents published alongside the Budget.
But some accountants have said the change is “unfair” on workers with a fluctuating income, who could be hit with cash flow issues.
Mike Warburton, a former tax director with the accountants Grant Thornton, now a tax columnist at The Telegraph, said: “You might make all your money over Christmas but get asked to pay tax throughout the whole year. So it’s a tax on income you haven’t earned yet, which is fundamentally unfair.”
He continued: “This is another idea dreamt up by people sitting in Whitehall to try to get more cash in sooner, without thinking through the implications for taxpayers.”