What are payments on account?

For people who file a Self Assessment tax return and want to understand their tax bill.

Applies to: England, Scotland, Wales, Northern Ireland Last checked against official sources: 6 October 2026

Payments on account are advance payments towards your next Self Assessment tax bill.

There are 2 payments a year, due by midnight on 31 January and 31 July.
Each one is usually half of your last year's tax bill.
You do not have to make them if last year's bill was under £1,000.
You also do not need them if you paid more than 80% of your tax another way, such as through your tax code.
If they were too low, you pay a balancing payment by 31 January the next year.
You can ask HMRC to reduce them online or with form SA303.

Key facts

Due 31 January and 31 July
Each is half last year's bill
Not needed if bill under £1,000
Reduce online or with SA303

How payments on account work

Payments on account are a way of paying tax ahead. HM Revenue and Customs (HMRC) takes your last tax bill, splits it in half, and asks for each half in advance of your next bill.

Payment	Deadline	Usually
First payment on account	31 January	Half of last year's bill
Second payment on account	31 July	Half of last year's bill
Balancing payment	31 January the following year	Anything still owed

For the 2026/27 tax year (6 April 2026 to 5 April 2027), the first payment on account is due by 31 January 2027 and the second by 31 July 2027. That same 31 January 2027 date is also the deadline to pay any tax still owed for 2025/26.

Who has to make them

You must make them unless:

your last Self Assessment bill was less than £1,000, or
you already paid more than 80% of all the tax you owed in another way, for example through your tax code or because your bank took tax off your interest

Worked example: your first year

Your first Self Assessment bill is £3,000. You have not made any payments on account before.

By 31 January you pay:

the £3,000 bill, plus
your first payment on account for the next year, £1,500 (half of £3,000)

That is £4,500 in total. Then by 31 July you pay the second £1,500.

This is why your first bill can feel much bigger than you expected.

Worked example: a later year

Your bill is £3,000 again. Last year you made two payments on account of £900 each, so £1,800 is already paid.

By 31 January you pay:

a balancing payment of £1,200 (£3,000 minus £1,800), plus
your first payment on account of £1,500 for the next year

That is £2,700. Then £1,500 is due by 31 July.

If you paid too much or too little

Payments on account are based on last year's income. If you earn more this year, you will owe a balancing payment. If you earn less, you may be able to claim a refund.

Reducing your payments on account

If you know your income has dropped, you can ask HMRC to lower them:

Sign in to your HMRC online account, or download form SA303 to send by post.
Give your expected income for the year.
HMRC will reduce the payments.

Be careful. If you cut them too far and your real bill is higher, HMRC charges interest on the amount you did not pay on time.

If you live in Scotland, Wales or Northern Ireland

Payments on account work in the same way across the UK, with the same dates.

Related guides

Where this comes from

Get it done

This takes you to the official service, which is free to use.

Check your payments on account

Common questions

Why is my first Self Assessment bill so high?

In your first year you usually pay the full bill plus your first payment on account for the next year, all by 31 January.

Can I reduce my payments on account?

Yes, online or by post on form SA303, if you expect a lower bill. If you reduce them too much, you will be charged interest on the shortfall.

When is the second payment on account due?

By midnight on 31 July.

Official sources

1.Understanding your Self Assessment tax bill: payments on account (GOV.UK)www.gov.uk/understand-self-assessment-bill/payments-on-account
2.Self Assessment tax returns: deadlines (GOV.UK)www.gov.uk/self-assessment-tax-returns/deadlines

Checked against GOV.UK on 6 October 2026

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