How to Pay Your Self Assessment Tax Bill (UK)
Filing your Self Assessment return is only half the job. On 31 January 2027 most self-employed people and landlords also need to pay: the balance for 2025/26 and, often, the first payment on account for 2026/27. Knowing how to pay, and planning for it before Christmas, makes January far less stressful. Here is how it works.
Key takeaways
- The balancing payment for 2025/26 and the first payment on account for 2026/27 are both due 31 January 2027.
- You can pay by online or telephone banking, debit card or Direct Debit set up in advance. Personal credit cards are not accepted.
- If you owe less than £3,000, are employed or get a pension, and file online by 30 December, you may be able to pay through your PAYE tax code.
- If you cannot pay in full, you may be able to set up a Time to Pay plan online, generally if you owe £30,000 or less. Interest and penalties apply to late payment.
For many sole traders, freelancers and landlords, January brings the biggest tax payment of the year. It often lands just after the most expensive month for personal spending, and in the same weeks as the filing deadline. That combination catches people out every year.
This guide focuses on paying, not filing: what you owe, the ways to pay HMRC and what to do if money is tight. It is general information, not tax advice. HMRC rules and payment options can change, so check the latest guidance on GOV.UK or speak to an accountant about your situation.
What you are paying on 31 January 2027
Your January bill can have up to two parts.
The balancing payment for 2025/26
This is the tax you still owe for the 2025/26 tax year after taking off anything you already paid, such as payments on account made during 2026. If your income went up, the balancing payment is usually larger. If it went down, it may be small, or you may be due a refund.
The first payment on account for 2026/27
Payments on account are advance payments towards next year's bill. Each one is normally half of your previous year's Self Assessment bill. If you have to make them, the first for 2026/27 is due on 31 January 2027, with a second due later in the year. Not everyone pays on account: whether you do depends on the size of your bill and how much of your tax is already collected at source, so check your calculation or GOV.UK.
Example
Imagine a freelance photographer whose 2025/26 tax bill is £6,000. She made payments on account of £2,000 each during 2026, so she owes a balancing payment of £2,000. Her first payment on account for 2026/27 is half of £6,000, which is £3,000. Her total due on 31 January 2027 is £5,000, not the £2,000 she expected. The figures are invented, but the surprise is very common.
Find out exactly how much you owe
Before you pay, confirm the figure. Once you have filed your return online, your calculation shows the amount due, and your HMRC online account shows your statement, including any payments already made. If an accountant files for you, ask them for the exact amount and the breakdown.
- File early if you can. You cannot know your balancing payment until your return is done. Filing in December or early January gives you time to arrange the money.
- Check your payment reference. Use the payment reference shown on your statement or in your online account, which is based on your Unique Taxpayer Reference. A wrong reference can delay the payment being matched to your account.
- Consider reducing payments on account. If you expect your 2026/27 income to be lower, you can ask HMRC to reduce your payments on account. Be careful, because if you reduce them too far, you will pay interest on the shortfall.
Common mistake
Budgeting only for the balancing payment. In your first year of self-employment especially, the January bill often includes a full year's tax plus half as much again as a payment on account. Look at your calculation as soon as it is ready so you are not caught short at the end of January.
Ways to pay HMRC
HMRC offers several payment methods. Some take time to set up or to clear, so choose early.
| Method | How it works | Things to know |
|---|---|---|
| Online or telephone banking | Pay from your bank account using HMRC's bank details and your payment reference | Check how long your bank's transfer method takes to reach HMRC |
| Debit card | Pay online with a debit card | Personal credit cards are not accepted |
| Direct Debit | HMRC collects the payment from your account | Must be set up in advance, so do not leave it to the last days |
| Through your PAYE tax code | The tax is collected through your salary or pension over the following tax year | Only if you owe less than £3,000, are employed or get a pension, and file online by 30 December |
| Time to Pay plan | Spread what you owe over a set period | Generally for £30,000 or less if you meet the conditions; interest applies |
Check the full list of options, HMRC's bank details and processing times on GOV.UK before you pay, and only use details from GOV.UK or your HMRC account.
Pro tip
Fraudsters send fake HMRC messages around the January deadline. HMRC will not ask you to pay by an unusual method or click a link to claim a refund. Always pay through your own banking app or by going to GOV.UK yourself, never from a link in a text or email.
Paying through your tax code: the 30 December option
If you are also employed or receive a pension, paying through your PAYE tax code can be a gentle way to settle a smaller bill. Instead of one January payment, the amount is collected gradually from your salary or pension during the next tax year.
The conditions are strict, though. You generally need to owe less than £3,000, be employed or get a pension, and file your return online by 30 December 2026. That means acting before the end of the holiday season, not in January. It also usually covers only the balancing payment, so check how payments on account are affected on GOV.UK.
If you cannot pay in full
Do not ignore the bill. HMRC charges interest on late payments from the day after the deadline, and late payment penalties can follow. Acting early gives you more options.
- File your return on time anyway. Late filing penalties are separate from late payment. Filing by the deadline avoids one of them even if you cannot pay.
- Pay what you can. A partial payment reduces the amount that interest is charged on.
- Check if you can use Time to Pay online. If you owe £30,000 or less and meet the conditions, you may be able to set up a payment plan online without calling HMRC.
- Contact HMRC if you do not qualify. If you owe more or need a different arrangement, contact HMRC as early as you can to discuss options.
- Stick to the plan. Missing payments in an agreed plan can cause it to be cancelled, so set the payments up so they happen automatically.
Time to Pay benefits
- Spreads the bill into manageable amounts
- Can be set up online if you meet the conditions
- Shows HMRC you are dealing with the debt
Things to keep in mind
- Interest still applies to the unpaid amount
- You must keep up with future tax as well
- Not everyone qualifies for the online service
Make next January easier
Once this year's bill is paid, set yourself up so the next one is not a shock.
- Save a fixed share of every payment you receive in a separate tax savings account. Many sole traders choose a percentage based on last year's bill.
- Put the dates in your calendar: 31 January for the balancing payment and first payment on account, plus your second payment on account later in the year.
- File earlier. Aim to file soon after the tax year ends in April, so you know your January bill months in advance.
- Keep your records up to date, especially if Making Tax Digital for Income Tax applies to you, so your tax position is clearer during the year.
Your Self Assessment payment checklist
- File your 2025/26 return online as early as you can
- Check your calculation for the balancing payment and any payment on account
- Confirm your payment reference in your HMRC online account
- Decide whether to pay through your tax code (file by 30 December 2026)
- Choose a payment method and allow time for it to clear
- Set up a Direct Debit in advance if you prefer that method
- Pay by 31 January 2027 using details from GOV.UK only
- If you cannot pay in full, check Time to Pay before the deadline
- Start a tax savings pot for next year
Frequently asked questions
Can I pay my Self Assessment bill with a credit card?
No. HMRC does not accept personal credit cards. You can pay by debit card, online or telephone banking, Direct Debit set up in advance and other methods listed on GOV.UK.
What is a payment on account?
It is an advance payment towards next year's tax bill, normally half of your previous year's Self Assessment bill. If you need to make them, the first is due on 31 January and the second later in the year.
What happens if I pay late?
HMRC charges interest on tax paid late, and late payment penalties can also apply. If you cannot pay in full, pay what you can and check whether you can set up a Time to Pay plan.
Can I pay through my salary instead?
Possibly. If you owe less than £3,000, are employed or get a pension, and file online by 30 December, HMRC can usually collect the tax through your PAYE tax code during the next tax year.
Related reading
The bottom line
Your 31 January 2027 bill may include both the 2025/26 balancing payment and the first payment on account for 2026/27, so check your calculation early. Pick a payment method that suits you, allow time for it to clear, and only use payment details from GOV.UK or your HMRC account. If you cannot pay in full, act before the deadline rather than after.
HMRC's rules, payment options and thresholds can change. Check the latest guidance on GOV.UK, or ask an accountant if your situation is complicated.
