Answers · UK 2025/26
When do I pay tax as a self-employed?
Self-employed Income Tax and Class 4 NI are due via Self Assessment in two instalments: 31 January (balancing payment for the tax year just ended, plus first payment on account for the next) and 31 July (second payment on account). The full balance is settled the following 31 January.
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Self Assessment uses a "payments on account" system. The tax year ends 5 April; you file your return by the following 31 January online (31 October if filing on paper). The 31 January payment combines: balancing tax for the year just ended; first payment on account for the current year (50% of the prior year's liability). A second equal payment on account follows on 31 July, and the cycle restarts the next 31 January. Worked example: 2024/25 tax bill £8,000. By 31 January 2026 you pay £8,000 balancing + £4,000 first POA = £12,000. By 31 July 2026 a second £4,000 POA. By 31 January 2027 you pay the 2025/26 balancing (positive or negative) plus first POA for 2026/27. Payments on account are not required if last year's bill was under £1,000 or 80% of tax was already collected at source (PAYE). Late filing: £100 immediate fine, then £10 a day after three months, then 5% (or £300 minimum) penalties at six and 12 months. Late payment: 2.6% interest from 6 April 2025 and 5% surcharges. MTD ITSA — quarterly digital submissions — starts April 2026 for sole traders/landlords with income over £50,000, April 2027 for over £30,000.
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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.