Your total tax bill from the previous tax year
Your estimated tax bill for the current tax year
Any tax payments you have already made this year
Reg. 07380272 · England & Wales · Est. 2010
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Total Payments
£6,000.00
POA Amount (each)
£2,500.00
Total POA
£5,000.00
Balancing
£1,000.00
First Payment on Account
31 January 2026
Second Payment on Account
31 July 2026
Balancing Payment
31 January 2027
Everything you need to know about HMRC advance tax payments
What are payments on account?
Payments on account are advance payments towards your next tax bill. HMRC requires them if your previous year's Self Assessment tax bill was more than £1,000 and less than 80% of your tax was collected at source (e.g. through PAYE). Each payment on account is half of your previous year's tax bill. You make two payments on account per year, plus a possible balancing payment when you file your return.
When are payments on account due?
There are two payments on account each year. The first is due by 31 January during the tax year (e.g. 31 January 2026 for the 2025/26 tax year). The second is due by 31 July after the tax year ends (e.g. 31 July 2026). Any balancing payment is due by the following 31 January (e.g. 31 January 2027), at the same time as your first payment on account for the next year.
Can I reduce my payments on account?
Yes, if you believe your tax bill for the current year will be lower than the previous year, you can apply to HMRC to reduce your payments on account. You can do this through your online Self Assessment account or by writing to HMRC. However, be careful: if you reduce them too much and your actual tax bill is higher, HMRC may charge interest on the underpayment.
What happens if I miss a payment?
If you miss a payment on account or pay late, HMRC will charge interest on the amount outstanding from the due date until the payment is received. If the payment is more than 30 days late, a 5% surcharge may also apply. Further surcharges can be added at 6 months and 12 months. It is important to pay on time or contact HMRC to set up a payment plan if you are struggling.
How is the balancing payment calculated?
The balancing payment is the difference between your actual tax liability for the year and the total payments on account you have already made. If your two payments on account exceed your actual tax bill, you will receive a refund instead. The balancing payment (or refund) is calculated when you submit your Self Assessment tax return, and any amount owed is due by 31 January following the end of the tax year.
Who must make payments on account?
Payments on account apply to self-employed sole traders, partners in a partnership, landlords with rental income, and anyone else whose previous year's Self Assessment tax bill was over £1,000 and where less than 80% of their tax was deducted at source. If your circumstances change significantly, you can apply to reduce your payments on account to avoid overpaying throughout the year.
Key dates and who must pay
Key Dates
- • 31 January: First POA + balancing payment
- • 31 July: Second POA
- • 31 January (following): Next year's first POA
- • 5 April: End of tax year
Who Must Pay
- • Self-employed sole traders
- • Partners in a partnership
- • Landlords with rental income
- • Anyone with tax bill over £1,000
HMRC-Aligned: This calculator uses official 2025/26 Self Assessment rules for payments on account. Actual amounts may vary depending on additional income sources, tax reliefs claimed, and any adjustments made by HMRC. Always check your Self Assessment account for exact figures.
This calculator uses official rates and thresholds from:
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms