Self assessment
3 min read
· Updated
May 2026
Payments on account, explained
Why your first tax bill can be one and a half times what you expected.
If your self assessment bill is more than £1,000, HMRC usually asks you to pay towards next year's bill in advance. These are payments on account.
How they work
Each payment is half of last year's bill. The first is due on 31 January, along with any balance for the year just gone. The second is due on 31 July.
The first-year shock
In your first year of trading you pay the full year's tax plus half again on account, all on the same day. Set money aside from the start and it won't come as a surprise.
Reducing them
If your income has dropped, you can ask HMRC to reduce your payments on account. Reduce them too far and you'll pay interest on the difference, so we check the numbers first.
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This guide is general information, correct when it was last updated. Tax rules change and every situation is different, so please don’t act on it without talking to an accountant.
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