How to Pay Your Self-Assessment Tax Bill: All Options Explained 2026/27
From online banking to HMRC Time to Pay, here are all the ways to pay your self-assessment tax bill in 2026/27 -- including the budget payment plan and what happens if you can't pay.
Once you have filed your self-assessment return and know what you owe, the next step is getting the payment to HMRC on time. A missed or late payment results in interest at around 7.5% and surcharges of up to 15% of the unpaid amount (5% at 30 days, 5% at 6 months, 5% at 12 months). Knowing all the available payment methods -- and what to do if you cannot pay in full -- can save significant costs.
Key payment deadlines in 2026/27
Self-assessment tax payments fall on two main dates:
31 January 2027:
- Balancing payment for 2025/26 (the difference between the final 2025/26 tax liability and payments on account already made).
- First payment on account for 2026/27 (50% of the 2025/26 tax liability, unless you have applied to reduce payments on account).
31 July 2027:
- Second payment on account for 2026/27 (the remaining 50%).
Capital Gains Tax from UK residential property disposals (reported on the 60-day CGT return) follows a separate 60-day payment deadline, not 31 January. CGT on other assets is included in the normal self-assessment payment.
Payment methods in detail
1. Online banking (bank transfer/BACS/CHAPS)
This is the most reliable method for large payments. You pay directly from your bank to HMRC's bank account:
- HMRC sort code: 08-32-10
- Account number: 12001020
- Account name: HMRC Cumbernauld
- Reference: Your 10-digit Unique Taxpayer Reference (UTR) followed by the letter K (e.g. 1234567890K).
Faster Payments typically arrive the same day or within 2 hours. CHAPS arrives the same day but usually has a bank fee. BACS takes 3 working days. For payments due on 31 January, allow time for the transfer.
2. Online payment via HMRC account (debit card)
You can pay directly through your HMRC online account (or the HMRC app) using a UK debit card. There is no surcharge for debit card payments. The payment is typically processed the same day or next working day. This is convenient for smaller amounts but may have card transaction limits.
Corporate credit cards are accepted with a 1.5% surcharge. Personal credit cards are not accepted.
3. Cheque by post
You can make a cheque payable to "HM Revenue and Customs only" with your UTR on the back. Allow at least 3 working days for the cheque to arrive and be processed. Given the 31 January deadline, post your cheque by 25 January at the latest (earlier for first-class). HMRC will treat the payment date as the date the cheque is received, not the date it clears.
4. At your bank or post office
You can pay your self-assessment bill at your bank or post office branch using a paying-in slip (payslip). HMRC sends a payslip with paper statements, or you can download one from your HMRC online account. This method may be limited by branch availability and hours.
5. PAYE tax code collection (under £3,000)
If your self-assessment bill is £3,000 or less, you can ask HMRC to collect the amount through your PAYE tax code in the following year. This spreads the tax over 12 equal monthly deductions. To qualify:
- You must file your return online by 30 December (not 31 January).
- The underpayment must be under £3,000.
- You must have a PAYE income source in the following year.
HMRC adjusts your tax code automatically (reducing your personal allowance effectively) so the right amount is collected over the year.
Budget payment plan: spreading payments ahead of time
The budget payment plan (BPP) is HMRC's voluntary advance payment scheme. You set up regular payments (weekly or monthly) in advance and they are credited to your self-assessment account. When the January or July deadline arrives, HMRC deducts the amount already paid from the balance due.
Benefits:
- Avoids a large single payment in January.
- Any overpayment is refunded after the return is filed.
- No interest charged on advance payments.
Setup: Available through your HMRC online account under Self Assessment.
Time to Pay: if you cannot pay the full amount
If you genuinely cannot pay your self-assessment bill on time, the worst thing you can do is ignore it. Contact HMRC as soon as possible to arrange a Time to Pay (TTP) instalment agreement:
- Online TTP: For bills under £30,000 that are less than 60 days overdue, you can set up TTP online through your HMRC account without speaking to anyone.
- Phone TTP: For larger amounts or if online TTP is not available, call HMRC's self-assessment helpline and explain your situation.
What HMRC needs to know:
- Why you cannot pay in full.
- Your income and essential outgoings.
- Your assets and any savings.
- What you can afford to pay each month.
TTP conditions:
- Interest continues to accrue at ~7.5% during the TTP period.
- Surcharges (5% penalties) are suspended while the TTP is maintained.
- If you miss a TTP payment, HMRC can cancel the arrangement and demand immediate payment.
Interest rate and late payment charges
HMRC's interest rate on late payment is Bank of England base rate + 2.5%. As of mid-2026, with the base rate approximately 4.25-5%, the HMRC late payment rate is approximately 6.75-7.5%.
In addition to interest, surcharges of 5% apply:
- 5% surcharge if unpaid 30 days after the due date.
- Further 5% surcharge if unpaid 6 months after the due date.
- Further 5% surcharge if unpaid 12 months after the due date.
Total potential surcharges: 15% of the unpaid tax, on top of running interest. This makes late payment extremely expensive for large tax bills. Proactive engagement with HMRC -- either by paying or setting up TTP before the deadline -- is always the right approach.
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Open Self-Employed Tax calculatorFrequently asked questions
When is the self-assessment tax payment deadline?
The main self-assessment payment deadline is 31 January following the end of the tax year. For 2025/26, the balancing payment (any tax owed minus payments on account already made) and the first payment on account for 2026/27 are both due by 31 January 2027. A second payment on account for 2026/27 is due by 31 July 2027.
What is the fastest way to pay a self-assessment tax bill?
The fastest methods are online banking (Faster Payments), which typically arrives at HMRC within 2 hours on bank working days, or debit card payment through HMRC's online account, which is usually processed the same day. Credit card payments are no longer accepted for personal tax liabilities. Cheques take the longest -- allow 3 working days.
Can I still pay self-assessment by credit card?
No. HMRC stopped accepting personal credit card payments for self-assessment in January 2018. Debit cards are still accepted, as are corporate credit cards (with a 1.5% surcharge). If you cannot pay using these methods, you should consider a bank transfer or contact HMRC about Time to Pay.
What is HMRC Time to Pay?
Time to Pay (TTP) is an arrangement where HMRC agrees to let you pay your tax bill in instalments over an agreed period -- typically 3-12 months. Interest accrues at the current HMRC late payment rate (around 7.5% as of 2026/27) during the TTP period. Penalties are generally suspended while a TTP arrangement is in place and being adhered to.
What interest rate does HMRC charge on late tax?
HMRC charges interest on late payments at the Bank of England base rate plus 2.5%. With the base rate at approximately 5% in mid-2026, the HMRC interest rate is around 7.5%. Interest runs from the payment due date until the tax is paid in full, regardless of whether a TTP is in place.
What surcharges apply if I miss the 31 January deadline?
If tax remains unpaid after 30 days past the due date, a 5% surcharge is applied to the unpaid amount. A further 5% surcharge applies if it is still unpaid after 6 months, and another 5% after 12 months. These surcharges apply in addition to the daily interest charges. Entering a Time to Pay arrangement before the deadline avoids these surcharges.
What is the HMRC budget payment plan?
The budget payment plan allows you to make voluntary weekly or monthly payments to HMRC in advance of your January tax bill. When your January bill falls due, the payments already made are deducted. This is useful for people who prefer to spread their tax payments throughout the year rather than making a large lump-sum payment in January.
Can I pay self-assessment through PAYE if I am also employed?
Yes. If your self-assessment tax bill is under £3,000, HMRC can collect it through your PAYE tax code in the following tax year (spreading the collection across 12 months), provided you file your return online by 30 December (not the usual January deadline). This is convenient if you prefer to spread the payment but requires early filing.
What happens if HMRC rejects my Time to Pay application?
HMRC can reject TTP applications if it does not believe your hardship is genuine or if your compliance history is poor (multiple missed returns or payments). If rejected, the full amount remains due with late payment interest and surcharges. You can appeal or seek advice from a tax adviser. In extreme cases of financial hardship, HMRC may consider deferral or even write-off, but this is rare.
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