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Payments on Account Explained, With a GOV.UK Example
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Not tax advice. Information only. Check GOV.UK or a qualified adviser for your own situation. Dates and rules were last checked against GOV.UK on 17 October 2026 and can change.
Short answer: Payments on account are payments towards your next tax bill (including Class 4 National Insurance if you're self-employed), made in two instalments on 31 January and 31 July. Each is usually half of the tax you owed last year. A balancing payment is due on 31 January for any difference.
When you must make them
GOV.UK says you must make them unless either:
- last year's tax bill was less than £1,000; or
- you paid more than 80% of last year's tax outside Self Assessment (for example through your tax code or because your bank had already deducted interest).
Your Self Assessment statement or online account shows whether they apply and how much.
Worked example (GOV.UK's, 2023-24)
Your 2023 to 2024 bill is £3,000. Based on 2022 to 2023 you paid two payments on account of £900 each (£1,800). By midnight on 31 January 2025 you owe:
- balancing payment £1,200 (£3,000 minus £1,800); plus
- first payment on account £1,500 (half of £3,000) for 2024 to 2025. Total £2,700 on 31 January 2025, then £1,500 on 31 July 2025.
First time filing
GOV.UK's example: bill £3,000 and no payments on account last year means £4,500 on 31 January (£3,000 plus a first payment on account of £1,500), then £1,500 on 31 July.
If you earn less or more than last year
- Earn more than estimated: you may owe a balancing payment.
- Earn less: you may be able to claim a refund, or reduce your payments on account.
Where to check
Sign in to your online account → latest Self Assessment return → View statements.
FAQ
Are payments on account a penalty? No; they are advance payments towards your bill.
Does the balancing payment include other items? GOV.UK says it also includes anything you owe for capital gains or student loans (if self-employed).
Do they apply every year? Based on the previous year's bill and the two tests above.
What we could not verify
- Your own figures; use your HMRC statement.
- Edge cases (changes after filing, amended returns).
Sources (GOV.UK)
- GOV.UK, Understand your Self Assessment bill: Payments on account — https://www.gov.uk/understand-self-assessment-bill/payments-on-account (read 17 October 2026)
- GOV.UK, Self Assessment tax returns: Deadlines — https://www.gov.uk/self-assessment-tax-returns/deadlines (read 17 October 2026)
Deadlines calendar → Penalty estimator →
Not tax advice. See the disclosure.