How to Pay Your Self Assessment Tax Bill 2025-26
Once you have filed your Self Assessment tax return, you need to pay what you owe. Here are all the payment methods, key deadlines, and what happens if you miss them.
Self Assessment Payment Deadlines
There are three payment dates each year for Self Assessment taxpayers:
| Payment | Due Date | Amount |
|---|---|---|
| Balancing payment (2024-25) | 31 January 2026 | Tax due minus payments on account already made |
| First payment on account (2025-26) | 31 January 2026 | 50% of previous year's net tax bill |
| Second payment on account (2025-26) | 31 July 2026 | 50% of previous year's net tax bill |
The 31 January deadline is the most important. On that single day you must pay both the balancing payment for the completed tax year AND the first payment on account for the next year. This can create a large combined payment if you are new to Self Assessment.
What Are Payments on Account?
Payments on account are advance payments HMRC requires if your previous year's tax bill exceeded £1,000 and less than 80% of your tax was deducted at source (e.g. through PAYE). The logic is that HMRC wants you to pay next year's tax before it is due, rather than waiting until January of the following year.
Each payment on account equals 50% of your previous year's Self Assessment liability. If your 2024-25 tax bill was £4,000, your payments on account for 2025-26 are:
- First payment on account: £2,000, due 31 January 2026
- Second payment on account: £2,000, due 31 July 2026
When you file your 2025-26 return (by January 2027), your actual tax bill is calculated. If it is more than the £4,000 already paid, you pay the difference (the balancing payment) by 31 January 2027. If it is less, HMRC refunds the overpayment.
Reducing Payments on Account
If you know your current year's income will be significantly lower than the previous year (e.g. you have stopped self-employment, or income has dropped substantially), you can apply to reduce your payments on account. Use the HMRC online service or include the request on your tax return.
Be careful: if you reduce them and your actual bill is higher than anticipated, HMRC will charge interest on the shortfall from the original due dates.
Payment Methods
Online Bank Transfer (Fastest and Recommended)
Pay by Faster Payments or CHAPS directly to HMRC's bank account:
- Sort code: 08 32 10
- Account number: 12001039
- Account name: HMRC Cumbernauld
- Reference: your 10-digit Unique Taxpayer Reference (UTR) followed by "K"
Faster Payments arrive the same or next working day. Allow at least 3 working days for CHAPS. The payment reference (UTR + K) is essential, without it, HMRC cannot allocate the payment to your account.
Debit Card via HMRC Website
Go to gov.uk/pay-self-assessment-tax-bill and pay with a UK debit card. Credit cards are not accepted (since 2018). Payments are processed immediately and appear on your account within 24 hours.
Direct Debit
You can set up a Direct Debit through your HMRC online account. For each payment, HMRC takes the money on the due date. You must set up the Direct Debit well in advance, HMRC recommends doing so at least 5 working days before the deadline.
At a Bank or Building Society
You can pay over the counter at most UK banks and building societies using a HMRC payslip. Print the payslip from your HMRC online account. Allow 3 working days for the payment to reach HMRC. Note that many branches no longer accept cash, check with your bank first.
Budget Payment Plan
If you prefer to spread payments throughout the year, HMRC offers a voluntary Budget Payment Plan. You pay a regular amount into your HMRC account and the credit is used when your tax bill falls due. This is separate from the Time to Pay arrangement.
Late Payment Penalties and Interest
HMRC charges interest on all late Self Assessment payments from the day after the due date. The interest rate for 2025-26 is 7.25% per annum (base rate + 2.5%, subject to change).
In addition to interest, HMRC applies surcharges:
| How Late | Surcharge |
|---|---|
| Up to 30 days late | Interest only |
| 30 days late | 5% of unpaid tax |
| 6 months late | Additional 5% (total 10%) |
| 12 months late | Additional 5% (total 15%) |
These surcharges are on top of interest, not instead of it. On a £5,000 late payment (after 30 days), the surcharge alone is £250 plus daily interest.
If You Cannot Pay: Time to Pay
If you cannot pay your bill in full, contact HMRC before the deadline, ideally as soon as you know you will struggle. HMRC's Time to Pay scheme lets eligible taxpayers pay in monthly instalments. Eligibility requirements typically include:
- Your Self Assessment return must be filed and up to date
- You must owe less than £30,000 (for the online self-serve option)
- You must be within 60 days of the payment deadline
- You have no other HMRC payment plans or debts
Interest still accrues during a Time to Pay arrangement, but there are no additional surcharges provided the arrangement is maintained.
Frequently Asked Questions
What is the deadline to pay Self Assessment tax?
The main deadline is 31 January following the tax year end. For 2024-25, payment is due 31 January 2026. A second payment on account is due by 31 July 2026.
What are payments on account?
Advance payments towards next year's tax bill. If your bill exceeds £1,000 and most tax was not deducted at source, HMRC requires two payments on account: 50% by 31 January and 50% by 31 July.
How can I pay my Self Assessment tax bill?
Bank transfer (sort code 08 32 10, account 12001039), debit card via gov.uk, Direct Debit, or at a bank branch. Always include your UTR followed by "K" as the payment reference.
What happens if I cannot pay my Self Assessment bill?
Contact HMRC before the deadline to discuss a Time to Pay arrangement. You must have filed your return and typically owe less than £30,000 to use the online self-serve option.