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Business Tool2026/27 tax year
Payments on Account Calculator 2026/27

Payments on Account Calculator 2026/27

Work out your two payments on account towards 2026/27, due 31 January 2027 and 31 July 2027, check whether you need to make them, and see what reducing them would do.

Rates checked against GOV.UK on 19 October 2026 · How we check our calculators

Compliance Alert: Based on your 2025/26 Self Assessment bill. Your HMRC online account shows the exact amounts once your 2025/26 return is filed.

Your 2025/26 Self Assessment

Your payments on account for 2026/27

By 31 January 2027

£3,565.90

A Sunday: Bacs must arrive by Friday 29 January 2027

By 31 July 2027

£3,565.90

A Saturday: Bacs must arrive by Friday 30 July 2027

Each payment: half of £7,131.80
£3,565.90
Total towards 2026/27
£7,131.80
Paying late? A payment on account paid late is charged interest from its due date. Penalties are charged on the year's tax left unpaid, as the Self Assessment penalty calculator shows.

Why 31 January can be more than your bill

On 31 January 2027 you pay the rest of your 2025/26 tax and the first payment on account for 2026/27. In your first year with payments on account that's one and a half times the bill: a sole trader with a £7,131.80 bill for 2025/26 pays £10,697.70 in January and £3,565.90 in July. From the second year, the payments already made come off the January balance. The Self Assessment calculator works out the full January figure.

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Important Disclaimer

This tool provides indicative calculations only and does not constitute financial, accounting, tax, or legal advice. The accuracy of results depends on the accuracy of information you provide. Consult a qualified professional for complex situations.

Overview

Payments on account are advance payments towards your next Self Assessment bill. Each one is half of last year's bill, due by 31 January and 31 July. So towards 2026/27 you pay half of your 2025/26 bill by 31 January 2027 and the other half by 31 July 2027, and whatever is left for 2026/27 is settled on 31 January 2028. This calculator works out each payment from your 2025/26 bill, checks the two cases where HMRC doesn't ask for them, and shows what reducing them would do if you expect 2026/27 to be lower.

Worked Example (2026/27)

Worked Example: Reducing Payments on Account

Scenario: a 2025/26 Self Assessment bill of £7,131.80, no PAYE.

Payments on account for 2026/27: - 31 January 2027: half of £7,131.80 = £3,565.90 - 31 July 2027: £3,565.90

Now suppose trading slows and the 2026/27 bill is expected to be £4,000. Reducing the payments to half of that gives £2,000 each, or £3,131.80 less in total. If 2026/27 turns out higher than £4,000, HMRC charges interest on the shortfall, so reduce only to a figure you can back up.

2026/27 Rates & Thresholds

Rule2026/27 payments on account
Each paymentHalf of the 2025/26 Self Assessment bill
Due31 January 2027 and 31 July 2027
Not needed if2025/26 bill under £1,000
Not needed ifMore than 80% of 2025/26 tax paid outside Self Assessment
IncludedIncome tax and Class 4 National Insurance
Not includedCapital gains tax, student loan repayments
ReduceHMRC online account or form SA303

Reducing Them: When It Makes Sense

You can ask HMRC to reduce your payments on account if you expect your next bill to be lower: profits have fallen, you've stopped trading or sold a rental property, or more tax will be taken through PAYE. Do it in your HMRC online account or with form SA303.

Be realistic. If the final bill is higher than the reduced payments, HMRC charges interest on the difference. Reducing to zero when you'll still owe tax just moves the bill to January with interest added.

Paying Ahead With a Budget Payment Plan

If a lump sum in January or July is hard, a Budget Payment Plan lets you pay weekly or monthly by Direct Debit towards your next bill. You need to be up to date with your last Self Assessment payments, and you can pause it for up to 6 months. If you've already missed a deadline, a Time to Pay arrangement is the route instead: see the Self Assessment penalty calculator.

Common Mistakes HMRC Penalises

  • Budgeting only for the year's tax and forgetting the first payment on account is due on the same 31 January.
  • Including capital gains tax or student loan in the bill used for payments on account.
  • Reducing payments on account without a solid reason, then paying interest when the bill comes in higher.
  • Thinking payments on account are optional extras. If HMRC's rules say they're due, unpaid amounts are charged interest.
  • Paying by Bacs on the deadline when it falls on a weekend.

When to Seek Professional Advice

Speak to an accountant if your income is very uneven from year to year, you've started or stopped a business, you have large capital gains, or you're unsure how much tax will be deducted at source next year. Your HMRC online account shows the payments on account it expects once your 2025/26 return is filed.

Frequently Asked Questions

How are payments on account worked out?+

Each one is half of your Self Assessment bill for the year before. For 2026/27 that's half of your 2025/26 bill, paid by 31 January 2027 and again by 31 July 2027. They cover income tax and Class 4 National Insurance.

When don't I have to make payments on account?+

When last year's Self Assessment bill was less than £1,000, or when more than 80% of the tax you owed was paid outside Self Assessment, for example through PAYE on a salary or pension. A bill of exactly £1,000 still needs them.

Do payments on account include capital gains tax or student loan?+

No. Capital gains tax and student loan repayments are paid with the 31 January balancing payment, not through payments on account.

Can I reduce my payments on account?+

Yes, if you expect your next bill to be lower, for example because your income has fallen or you've stopped trading. Use your HMRC online account or send form SA303. If the bill turns out higher than the reduced payments, HMRC charges interest on the difference.

What happens if I pay a payment on account late?+

HMRC charges interest from the date it was due. The 5% late payment penalties are based on that year's tax still unpaid 30 days after the year's balancing payment date, so a 2026/27 payment on account still unpaid at the end of 2 March 2028 would count.

Why is my first 31 January bill so big?+

In the first year you pay the whole of last year's bill plus the first payment on account for the next year, so one and a half times the bill. A £7,131.80 bill for 2025/26 means £10,697.70 by 31 January 2027 and £3,565.90 by 31 July 2027.

Both 2027 deadlines are at the weekend. When do I pay?+

31 January 2027 is a Sunday and 31 July 2027 a Saturday. A Bacs or CHAPS payment has to reach HMRC by the last working day before: Friday 29 January and Friday 30 July. Faster Payments and card payments usually arrive the same or next day.

Sources and how this calculator is checked

The rates and thresholds in this calculator come from the GOV.UK pages below. We last checked them on . The calculation engine is covered by 400+ automated tests, whose expected figures come from GOV.UK worked examples and PolicyEngine UK, an open-source model of the UK tax system. Read our methodology.

Spotted a figure that doesn't match GOV.UK? Tell us and we'll correct it.

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