What you owe and when
You pay your bill by 31 January for the tax year that ended the previous April, and if you make payments on account, your first one is due on the same date, with the second on 31 July. Your online account shows the amounts and the payment reference you need.
Ways to pay
GOV.UK lists these options, grouped by how quickly the money reaches HMRC:
- Same or next day: through your online bank account, online or telephone banking (Faster Payments), CHAPS, by debit or corporate credit card online, or at your bank or building society if you have a paying-in slip from HMRC.
- 3 working days: Bacs, or Direct Debit if you already have a Direct Debit arrangement with HMRC.
- 5 working days: Direct Debit if you are setting up a new arrangement with HMRC.
Allow for weekends and bank holidays
The payment has to reach HMRC by the deadline, not simply be sent by it. Because 31 January can fall at a weekend, and because slower methods take up to five working days, pay well ahead of the date if you use Bacs or set up a new Direct Debit.
If you cannot pay in full
GOV.UK says that if you cannot pay your tax bill in full you may be able to set up a payment plan and pay it in instalments. You can also pay in advance in weekly or monthly amounts before the deadline if that suits your cash flow. Contact HMRC before the due date rather than after, and file your return on time either way to avoid the filing penalties.
Avoid the January shock
A first-year return often produces a bill that includes payments on account, so you may owe more than a normal year in one go. Setting money aside monthly, and knowing your figure early, is the simplest protection.
Need a hand with your return?
We prepare and file Self Assessment returns for directors, sole traders and landlords, and tell you exactly what is due and when before anything is submitted. Call 0114 327 1480.