Reviewed by Mustafa Bilgic
Founder, WebCalculator
Rules and examples from GOV.UK Self Assessment guidance and section 59A of the Taxes Management Act 1970, checked on 25 September 2026. Estimates only, not tax advice.
Payments on account are advance payments towards your next Self Assessment tax bill, each half of the tax you owed last year. Enter your bill and what you have already paid to see your January and July payments, including the balancing payment.
Tax year you are paying for
Payments on account are payments towards your next Self Assessment tax bill, including Class 4 National Insurance if you're self-employed. They spread the cost over two instalments, each half of the tax you owed last year, due by midnight on 31 January and 31 July. Your Self Assessment statement or online account shows how much they are.
| Date | What you pay on a 2025/26 bill |
|---|---|
| 31 January 2027 | Balancing payment for 2025/26 plus the first payment on account for 2026/27 |
| 31 July 2027 | Second payment on account for 2026/27 |
The balancing payment is the year's tax less the payments on account you've made, and it also includes anything you owe for Capital Gains Tax or student loans, which aren't part of the payments on account. If you paid more on account than the final bill, you can claim the difference back.
You don't have to make payments on account if the tax you owed through Self Assessment last year was less than £1,000, or if you paid more than 80% of the tax you owed outside Self Assessment, for example through your tax code. The law behind this is section 59A of the Taxes Management Act 1970, which sets each payment at 50% of the previous year's Self Assessment tax.
Your bill for 2023/24 is £3,000 and you made two payments on account of £900 towards it. By 31 January 2025 you pay a £1,200 balancing payment plus a £1,500 first payment on account for 2024/25, £2,700 in all, then another £1,500 by 31 July 2025.
In your first year of Self Assessment there are no payments on account to set against the bill, so on the same £3,000 bill you'd pay £4,500 by 31 January 2025: the £3,000 plus the first £1,500 payment on account. That's why the first January bill often comes as a shock.
If you know your tax will be lower than last year, you can ask HMRC to reduce your payments on account, online or by sending form SA303. You'll need to give the amount you expect to earn. If you reduce your payments and your bill turns out higher, you'll be charged interest on the difference. Making Tax Digital for Income Tax doesn't change how you pay tax or the payment dates.
Estimate the bill itself with the self-employed tax calculator, see what HMRC charges on tax paid late with the late payment interest calculator and the Self Assessment penalty calculator, and check whether you need to send quarterly updates with the Making Tax Digital threshold checker.
Each payment is half of the tax you owed through Self Assessment for the previous year, including Class 4 National Insurance if you're self-employed. Capital Gains Tax and student loan repayments aren't included.
By midnight on 31 January and 31 July. The January payment is usually made together with the balancing payment for the tax year that has just ended.
If the tax you owed last year was less than £1,000, or if you paid more than 80% of the tax you owed outside Self Assessment, for example through your tax code.
In your first year you pay the whole bill plus the first payment on account for the next year. On a £3,000 bill, that's £4,500 by 31 January, with another £1,500 due in July.
Yes, if you expect your tax to be lower than last year. You can do it online or with form SA303, but HMRC charges interest if your bill turns out higher than the reduced payments.
No. Anything you owe for Capital Gains Tax or student loans is paid in the balancing payment by 31 January, not through payments on account.