Self Assessment · payments on account
Your next payment on account
If you're a sole trader or landlord who pays tax twice a year — 31 January and 31 July — this works out how much is due, checks whether you're actually exempt, and shows how to apply to pay less — properly, not by guessing.
How much is due?
Quickest answer: your two instalments are normally the exact same amount, so if you've already paid one this tax year, this one matches it — check your HMRC online account or last statement. Otherwise, work it out here.
Can I pay less than that?
Yes — if you genuinely expect this year's profit to be lower, you can apply to reduce your payments on account. Do it online through your Self Assessment account (the quickest way), or by post using form SA303. You'll need a realistic estimate of this year's tax bill, which is exactly what our free tax calculator is for — run your current-year numbers through it first, so the figure you give HMRC is one you can actually stand behind.
Reduce too far and it costs you
If your real bill ends up higher than the reduced amount you claimed, HMRC charges interest on the shortfall from the day it was due — there's no penalty on a payment on account itself, just interest, but it accrues daily and adds up. The rate moves with the Bank of England base rate (it was 7.75% as of the last published update, 9 January 2026) — check the current HMRC rate before deciding how far to reduce.
The rules in short
- Two instalments a year: 31 January and 31 July
- Each is normally half of last year's Income Tax + Class 4 NIC liability
- You're exempt if last year's relevant bill was under £1,000, or if 80%+ of it was already collected another way
- Any balance still owed after both instalments is due as a "balancing payment" the following 31 January
- A reduction claim can be made any time — before or after a payment is due — but doing it before the due date is what stops you overpaying in the first place
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Common questions
Who has to make payments on account?
Anyone whose last Self Assessment bill (Income Tax plus Class 4 National Insurance) was £1,000 or more — unless more than 80% of your tax was already collected at source, for example through a PAYE tax code.
How much is each payment on account?
Each instalment is half of your previous year's Income Tax and Class 4 National Insurance bill. There are two a year, due on 31 January and 31 July.
Can I reduce my payments on account?
Yes, if you genuinely expect this year's bill to be lower. Apply through your online Self Assessment account or with form SA303. If you reduce too far, HMRC charges interest on the shortfall.
What happens if I miss the 31 July deadline?
There's no late-payment penalty on a payment on account itself, but HMRC charges daily interest on the amount outstanding from the due date until you pay it.
Is the 31 July payment on top of my January bill?
No. It's the second of two instalments toward the same tax year. Any remaining balance is settled as a "balancing payment" the following 31 January.
Know the number before HMRC tells you
A payment on account shouldn't be a surprise. Our tax estimator works out your current-year liability — and your set-aside — so the next 31 January or 31 July is a formality, not a scramble.
- Self Assessment Tax Estimator 2026/27 — know what you owe before January, not after.
- Rental Property ROI & Yield Calculator — including Section 24 and a rate stress test.
- Freelance Day-Rate & Profit Calculator — works backwards from the take-home you want.
- Invoice Tracker & Log — auto paid/outstanding/overdue, with a chase list.
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See the toolkit — from £9 →Four working spreadsheets. £9 each, or all four for £19, with a 14-day money-back guarantee.