Payments on Account Explained (Self Assessment)

What they are

Payments on account are two advance payments towards your next tax bill, based on the tax you paid for the previous year. They are common for people who are self-employed or have other income outside PAYE.

When they are due

• 31 January during the tax year: the first payment on account, usually half of last year’s bill.
• 31 July after the tax year ends: the second, the other half.
• A balancing payment on the following 31 January, which makes up any difference once your return is done.

Why the first one catches people out

In the first year you may pay your final bill for the year just ended plus the first payment on account for the next year on the same date, 31 January. That can be a large sum, so set money aside.

Do you have to make them?

Generally if your last Self Assessment bill was over £1,000 and less than 80% of your income was taxed at source, HMRC asks for them. If you expect lower income, you can ask to reduce them. See the key tax dates.

Estimate your self-employed tax with the self-employed tax calculator.

This guide is general information, not financial or legal advice. Rates checked 8 October 2026 against GOV.UK.