Indietax

Payment on Account Calculator 2026/27

Updated for the 2026/27tax year · Last updated

country: "UK" applicableCountries: ["UK"]

Payments on account are advance payments toward your next year's tax bill. If your Self Assessment liability was £1,000 or more last year (and less than 80% was collected at source), HMRC requires you to pay half upfront in January and half in July.

This calculator shows exactly what your payments on account will be, when they're due, and what your January deadline looks like in total.

From your 2025/26 Self Assessment return — exclude CGT, student loans, and Class 2 NI

Payments on account apply when:

• Your qualifying bill is £1,000 or more, and

• Less than 80% was collected at source (e.g. PAYE)

Enter your previous year’s tax bill above.

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How this calculator works

Which tax bill to enter

Enter only your income tax and Class 4 National Insurance from your previous year's Self Assessment return. Do not include Capital Gains Tax, student loan repayments, Class 2 NIC, or any other one-off charges — HMRC excludes these from the payments on account calculation.

The £1,000 threshold

If your qualifying bill (income tax + Class 4 NIC) is less than £1,000, no payments on account are required. Your full tax bill is simply due on 31 January following the end of the tax year.

How each payment is calculated

Each payment on account equals exactly 50% of your previous year's qualifying bill. They are:

  • First payment on account — due 31 January (during the tax year)
  • Second payment on account — due 31 July (after the tax year ends)

Your January total

The January payment is often the painful one — it includes both the balancing payment for the year just ended and the first payment on account for the coming year. This calculator shows the full picture.

Reducing payments on account

If you expect this year's income to be substantially lower, you can apply to reduce payments on account through your Self Assessment return. HMRC charges interest if you under-reduce, so only do this when you have clear grounds.

Frequently asked questions

Payments on account are advance payments toward your next year's Self Assessment tax bill. HMRC requires them when your previous year's tax bill was £1,000 or more (and less than 80% was deducted at source). You make two equal payments — each equal to 50% of the prior year's bill — on 31 January and 31 July. The idea is to spread your tax burden so you're not hit with a large lump sum in January.
Your 31 January payment covers two things at once: the balancing payment for the tax year just ended (what you owe above any payments on account already made) plus the first payment on account for the current year. This means January can feel particularly large, especially in your first year of Self Assessment. After that, the system stabilises because your January and July payments are advance payments against the following year.
Yes — if you know your current year's income will be significantly lower than last year's, you can apply to reduce your payments on account. You do this through your Self Assessment return or by contacting HMRC directly. Be careful: if you reduce too aggressively and your actual bill is higher, HMRC charges interest on the underpayment from the original due date. Only reduce if you have good grounds to expect a lower bill.
If your current year profits will be substantially lower — for example, due to taking parental leave, a major client ending, or switching from employed to self-employed mid-year — you should apply to reduce your payments on account. Use the "Reduce payments on account" option in your online Self Assessment account or include a claim on paper returns. Keep evidence of why income is lower in case HMRC queries it.
The balancing payment is the difference between your actual tax bill for the year and the two payments on account you already made. It's due on 31 January following the end of the tax year. If your payments on account were too high (you overestimated), you'll receive a refund instead. The balancing payment also falls on the same day as your first payment on account for the following year.
Payments on account are based only on income tax and Class 4 NIC. They exclude Capital Gains Tax, student loan repayments, Class 2 NIC, pension annual allowance charges, and any tax due at source. If your Self Assessment bill consists largely of CGT, you may still be exempt from payments on account even if the total bill is over £1,000.
You're exempt from payments on account if your previous year's tax bill (income tax + Class 4 NIC only) was less than £1,000, or if more than 80% of your tax was deducted at source (e.g., via PAYE). If you go back to full-time employment and your self-employment income drops to zero, your next year's bill will likely fall under £1,000 and payments on account will stop automatically.

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