Payments on account: the two Self Assessment dates in 2027
By our count both 2027 dates fall on a weekend, so GOV.UK’s “last working day before” rule applies, except for Faster Payments and card payments.
Self Assessment taxpayers who make “payments on account” have two dates to watch in 2027: 31 January and 31 July, according to GOV.UK’s guidance on understanding the tax bill. Both payments are due “by midnight”, and each is “usually half of the tax you owed the previous year”.
Payments on account are “payments towards your next tax bill (including Class 4 National Insurance if you’re self-employed)”. GOV.UK says they “help spread the cost of your tax by making payments in 2 instalments”. A taxpayer’s Self Assessment statement or online account shows whether the instalments apply and how much they are.
| due date | falls on (our count) | what is paid | last working day before (our count) |
|---|---|---|---|
| 31 January 2027 | a weekend | balancing payment plus first payment on account | 29 January 2027, unless paying by Faster Payments or by debit or credit card |
| 31 July 2027 | a weekend | second payment on account | 30 July 2027, unless paying by Faster Payments or by debit or credit card |
How is each instalment worked out?
GOV.UK gives a worked example. A £3,000 tax bill for the 2023 to 2024 tax year produces a first payment on account of “£1,500 (half your 2023 to 2024 tax bill)” towards the 2024 to 2025 bill. The second payment, also £1,500, follows on 31 July 2025. By our reading of the same arithmetic, each payment on account in 2027 is usually half of the bill for the 2025-26 tax year, which ended on 5 April 2026 according to GOV.UK’s deadlines page.
The instalments are based on estimated earnings. If the final bill is larger, the difference is a “balancing payment”, which GOV.UK says must be made “by midnight on 31 January the following year”. In the example, the payment due on 31 January 2025 combined a £1,200 balancing payment with the first instalment. GOV.UK puts the amount due by midnight that day at £2,700. A taxpayer who earns less than estimated may be able to claim a tax refund.
Who does not have to make them?
Two exceptions exist, GOV.UK says. Payments on account are not required if the tax owed last year was “less than £1,000”, or if the taxpayer “paid more than 80%” of that tax outside Self Assessment, for example through a tax code or because a bank had already deducted interest on savings.
GOV.UK says anyone who did not make payments on account the year before, such as a first-time filer, must pay the full tax calculation and the first payment on account together. In its example that means £4,500 by 31 January 2025. That is the £3,000 bill plus a £1,500 first instalment.
What if the date falls on a weekend?
Both 2027 dates fall on a weekend, by our count: 31 January and 31 July. GOV.UK’s payment guidance says that if a deadline falls on a weekend or bank holiday, the payment must reach HMRC “on the last working day before”, unless the taxpayer pays by Faster Payments or by debit or credit card. That points to 29 January and 30 July 2027 for other routes, both working days: none of the three bank holiday lists on GOV.UK has a bank holiday on either date.
How early to pay depends on the route. GOV.UK lists “same or next day” for Faster Payments, CHAPS, debit or corporate credit card online and payment at a bank or building society; “3 working days” for a Bacs Direct Debit already set up with HMRC; and “5 working days” for a Direct Debit not set up before. HMRC no longer takes payments at the Post Office.
What happens if a payment is late?
Late payment brings interest and may bring a penalty, GOV.UK’s payment guidance says. GOV.UK’s penalties page puts the late-payment penalty at 5% of the unpaid tax. The charge applies at three points, the first at 30 days. The others come at 6 months and 12 months. Interest on the amount owed comes on top.
Can the instalments be reduced?
A taxpayer who expects a lower bill than last year can ask HMRC to cut the payments, online through the “Reduce payments on account” option or by post with form SA303. GOV.UK says that if a reduced instalment leaves a bigger bill than expected, “you’ll be charged interest on the difference”.
When are payments on account due?
By midnight on 31 January and 31 July, GOV.UK says.
How much is each one?
Usually half of the tax owed the previous year.
Do all taxpayers make them?
No: not if last year’s bill was less than £1,000, or if more than 80% of it was paid outside Self Assessment.
Where does a taxpayer see the amount?
On the Self Assessment statement or in the online account, under View statements.
