Answers · UK 2025/26
What is payment on account UK self-assessment?
Payments on account are advance instalments towards next year’s Income Tax bill, paid by self-assessment taxpayers. They are due 31 January and 31 July, each equal to half of the previous year’s tax (excluding CGT and Student Loan). They apply if your bill exceeds £1,000 and less than 80% is collected at source.
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How it works: when you file your 2024/25 self-assessment (deadline 31 January 2026), HMRC calculates your tax liability. If it is over £1,000 and PAYE has not already collected 80%+, you must pay two equal payments on account towards 2025/26 — each is 50% of the 2024/25 liability. Payment 1 is due 31 January 2026 (alongside any 2024/25 balancing payment); Payment 2 is due 31 July 2026. When you file 2025/26 the next January, a final balancing payment (or refund) reconciles the actual liability against the £X already paid. Worked example: 2024/25 tax liability £6,000. On 31 January 2026 you pay £6,000 balance + £3,000 first payment on account = £9,000. On 31 July 2026 you pay another £3,000. If 2025/26 turns out to be £5,000, your £6,000 paid on account means a £1,000 refund the next January. You can reduce payments on account via the SA303 form if you expect lower income, but if wrong HMRC charges interest on the shortfall.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.