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🇬🇧 UK-only · 2026/27 Tax Year · Free

Payment on Account Calculator

Calculate exactly how much you owe HMRC on Jan 31st and Jul 31st. Automatically model reductions if you expect your profits to drop this year.

✓Profit reduction modeller✓January & July dates✓Balancing payment check✓Free — no sign-up

Your Tax Details

The final tax and National Insurance amount you owed for the previous tax year.

If you also have a regular job, enter the tax deducted from your wages.

Total Payments on Account Due

£2,500.00

When to Pay HMRC

First Payment (POA 1)

£1,250.00

Due: 31 January

Second Payment (POA 2)

£1,250.00

Due: 31 July

Balancing Payment

Pays off any remaining tax owed for the year, plus the *next* year's POA 1.

Due: Following 31 January

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What Is a Payment on Account in Self Assessment?

A Payment on Account is basically an advance payment towards your next tax bill. HMRC uses it to collect tax throughout the year from people who don't pay enough tax automatically through their wages (like self-employed people, freelancers, or landlords).

You will only be forced to make a payment on account if your last Self Assessment tax bill was over £1,000. If you are unsure what your total bill will be this year, use our Self-Employed Tax Calculator or our Rental Income Tax Calculator to accurately estimate your liability.

When Are Payments on Account Due?

Your total advance payment is split strictly into two equal halves. The first payment (POA 1) must clear HMRC's bank account by midnight on 31 January. The second payment (POA 2) must clear by midnight on 31 July. Company directors receiving high dividends are often caught out by the July payment—you can check your dividend tax liability using our Dividend Tax Calculator.

Can I Reduce My Payments on Account?

Yes! HMRC assumes your profit this year will be identical to last year. If you know you have lost a big client, you are taking time off, or your expenses have massively increased, you can log into your Government Gateway account and ask to reduce them.

Risk of Under-Reduction (HMRC Interest)

You must be careful. If you reduce your payments to £0, but then end up making a huge profit, HMRC will charge you interest on the amount you should have paid in January and July. In 2026, this interest rate is typically the Bank of England base rate plus 2.5% (roughly 6.75%). You should only reduce them by a realistic, provable amount.

What Is a Balancing Payment?

Because payments on account are just estimates based on last year's figures, they are almost never exactly right. After the tax year ends and you file your actual tax return, HMRC compares what you already paid against what you actually owe. If you owe more, you make a balancing payment on the 31st of January. If you overpaid, HMRC will refund you the difference.

Tax returns

Frequently asked questions

What is a payment on account in Self Assessment?
Payments on account are advance payments towards your tax bill for the current tax year. HMRC requires them if your Self Assessment tax bill for the previous year was over £1,000, unless more than 80% of your tax was already deducted at source (e.g., through PAYE).
How is my payment on account calculated by HMRC?
HMRC assumes your income this year will be identical to last year. They take your total tax and National Insurance bill from the previous year and split it in half. You pay the first half in January, and the second half in July.
Can I reduce my payment on account and how?
Yes. If you know your profit is going to be lower this year than last year, you can log into your HMRC online account and ask to reduce your payments on account. You can use our calculator to see exactly how much you can reduce them by based on your expected profit drop.
When are Self Assessment payments on account due in 2026/27?
The first payment on account (POA 1) is due by midnight on 31 January. The second payment on account (POA 2) is due by midnight on 31 July.
What happens if I don't pay my payment on account on time?
If you miss the deadline, HMRC will charge you interest on the late amount. In 2026, the late payment interest rate is typically the Bank of England base rate plus 2.5%. If you leave it unpaid for more than 30 days, they can also issue a fixed £100 penalty.
Do I always have to make payments on account?
No. You only make them if your previous year's tax bill was £1,000 or more AND less than 80% of your total tax was collected automatically via PAYE. Many part-time freelancers who also have full-time jobs never have to make payments on account.
What is the difference between a payment on account and a balancing payment?
Payments on account are estimates paid in advance. A balancing payment is the final true-up. After the tax year ends and you submit your actual tax return, if your real tax bill was higher than the payments on account you already made, you must pay the difference (the balancing payment) by 31 January.
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