Guide
Pay your Self Assessment tax bill
How to pay your Self Assessment tax bill, including payment methods, payments on account, Budget Payment Plan, and Time to Pay arrangements.
Once you have filed your Self Assessment tax return, you need to pay the tax you owe. How much you pay and when depends on the size of your tax bill and whether payments on account apply to you.
This guide covers your payment deadlines, how payments on account work, the different ways you can pay, and what to do if you cannot pay in full.
Payment deadlines
Your main payment deadline is 31 January following the end of the tax year. If payments on account apply, you also have a 31 July deadline. Make sure you know which deadlines apply to you before they arrive.
Understanding payments on account
Payments on account are advance payments towards your next tax bill. They are based on the previous year's liability and are designed to spread your tax payments across the year rather than requiring a single lump sum.
This system catches many taxpayers by surprise in their first year of Self Assessment, because you may need to pay your current year's tax bill and the first payment on account for the following year on the same date.
When payments on account apply
Not everyone needs to make payments on account. Whether they apply to you depends on how much tax you owed in the previous year and how much was collected at source through PAYE.
Worked example
Suppose your 2024/25 tax bill (due 31 January 2026) is £6,000. Because this exceeds £1,000, payments on account apply for 2025/26:
- 31 January 2026: Pay £6,000 (your 2024/25 bill) plus £3,000 (first payment on account for 2025/26) = £9,000 total
- 31 July 2026: Pay £3,000 (second payment on account for 2025/26)
- 31 January 2027: Pay any balancing payment if your actual 2025/26 bill exceeds £6,000, or receive a refund if it was less
In your first year with a substantial bill, this can feel like paying 150% of your actual liability. Plan your cash flow accordingly.
How to reduce payments on account
If you expect your income to be significantly lower next year, you can apply to reduce your payments on account. This is done using form SA303, which you can submit online through your HMRC account or by post.
When you might reduce:
- Your self-employment income has dropped substantially
- You have stopped a source of income (such as rental property)
- You have started employment where tax is collected through PAYE
- You are claiming higher tax reliefs than last year (such as pension contributions)
Be cautious: If you reduce your payments on account too much and your actual liability turns out to be higher, HMRC will charge interest on the underpaid amount from the original due date. Only reduce if you are reasonably confident your income will fall.
How to pay
HMRC accepts several payment methods. Processing times vary, so choose a method that ensures your payment arrives by the deadline.
If you cannot pay in full
If you know you will not be able to pay your full tax bill by the deadline, do not ignore the problem. HMRC offers two options to help you manage your payments: a Budget Payment Plan (to plan ahead) and a Time to Pay arrangement (when you already owe tax).
Budget Payment Plan
A Budget Payment Plan lets you make regular payments throughout the year to build up credit against your next bill. You set this up before the tax is due, and it helps you avoid a large lump-sum payment in January.
Time to Pay arrangements
If you already owe tax and cannot pay in full, you may be able to set up a Time to Pay arrangement with HMRC. This lets you pay in instalments over an agreed period. Contact HMRC as early as possible - ideally before the payment deadline - to have the best chance of agreeing a plan.
What happens if you pay late
HMRC charges interest on any tax paid after the deadline, calculated from the due date. After 30 days, late payment penalties begin to apply. These are separate from late filing penalties. The longer you leave it, the more it costs.
Setting up a Time to Pay arrangement before the 30-day mark prevents late payment penalties, though interest still accrues.
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Check your tax bill
Log in to your HMRC online account to view your Self Assessment tax bill and confirm how much you owe. Check whether payments on account are included.
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Note your payment deadlines
Your main deadline is 31 January. If payments on account apply, you also have a 31 July deadline. Set reminders at least two weeks before each date.
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Decide whether to reduce payments on account
If your income has dropped, consider submitting form SA303 to reduce your payments on account. Do this before the payment deadline.
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Choose your payment method
Select a method that reaches HMRC by the deadline. Faster Payments and CHAPS are quickest. Direct Debit and cheque take longer to process.
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Pay using your UTR as the reference
Use your 10-digit UTR followed by the letter K as your payment reference. If you use the wrong reference, your payment may not be allocated correctly.
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Set up a Budget Payment Plan (optional)
If you want to spread next year's payments, set up a Budget Payment Plan through your HMRC online account. Choose weekly or monthly Direct Debit.
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Contact HMRC if you cannot pay
If you cannot pay in full, set up a Time to Pay arrangement online (if you owe £30,000 or less) or call the Self Assessment Payment Helpline on 0300 200 3822. Do this before the deadline.