If you’re self-employed, a landlord, or have income that isn’t taxed automatically, Self Assessment is one of those things that comes around every year whether you’re ready for it or not.

We know tax isn’t exactly exciting… but paying it on time does make life a lot easier.

The all-important date: 31st January

For most people, 31st January is the key deadline to remember.

By 31st January, you need to:

• Submit your online Self Assessment tax return, and
• Pay any tax you owe for the previous tax year

If Payments on Account apply to you, you’ll also be paying:

• Your first Payment on Account for the current tax year on 31st January
• Your second Payment on Account on 31st July

Missing the 31st January deadline can mean interest and penalties, which is why we always recommend planning ahead rather than hoping January will be kind to you.

Ways you can pay your tax bill

Once HMRC has calculated how much you owe, it’s over to you to make the payment. There are a few different ways to do this, and HMRC sets them all out clearly on their website.

You can find the full, up-to-date list of payment options here:
https://www.gov.uk/pay-self-assessment-tax-bill

Some of the most common options include:

Online or telephone banking

You can pay directly from your bank account using HMRC’s bank details.
Make sure you use your 10-digit Unique Taxpayer Reference (UTR) as the payment reference.

These payments usually take up to 3 working days, so don’t leave it until the night of 31st January.

Debit card

You can pay online through your HMRC account using a debit card.
It’s quick and usually shows on your account the same day.

(Just to note: HMRC no longer accepts personal credit cards for Self Assessment.)

Direct Debit

You can set up a Direct Debit through your HMRC online account.
This is handy, but it needs setting up in advance, so it’s not ideal if you’re right up against the deadline.

Same-day bank transfer (CHAPS)

If you’ve left things late and need the payment to clear immediately, CHAPS is an option – although your bank may charge for it.

Budget Payment Plan

If you don’t like big January tax bills (and honestly, who does?), HMRC offers a Budget Payment Plan.
This lets you pay smaller amounts weekly or monthly towards your next tax bill, spreading the cost across the year.

Payment Plan.

This lets you pay smaller amounts weekly or monthly towards your next tax bill, spreading the cost across the year.

A quick but important note from us…

We really like you.
We care about your business.
We want you to stay on HMRC’s good side.

But no — we don’t actually pay the tax for you

What we do do is:

• Calculate what you owe
• Tell you when it’s due
• Explain how to pay it
• Help you plan so it doesn’t come as a nasty surprise

The final step of pressing “pay” is still yours.

What if you can’t pay by 31st January?

If paying in full by 31st January isn’t possible, don’t panic — and don’t ignore it.

HMRC has support in place for people who are struggling to pay, including the option to spread the cost through a Time to Pay arrangement.

You can read more about what help is available here:
https://www.gov.uk/difficulties-paying-hmrc

Interest will usually still apply, but it’s far better than penalties or enforcement action. The key thing is to deal with it early.

A little planning goes a long way

Self Assessment is much less stressful when you:

• Set money aside regularly
• Understand Payments on Account
• Review your tax position before January arrives

If you’re ever unsure what you should be paying, when it’s due, or how best to plan for it, that’s exactly where we come in.

And we promise — we’ll explain it without the jargon.

How to pay your self assessment