# What are payments on account?

> Quick answer · Last updated 23 June 2026

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## In short

Advance payments towards next year's Self Assessment tax bill. HMRC asks for two instalments each year — 31 January and 31 July — if your last bill was over £1,000 and less than 80% of your tax was collected at source.

Payments on account are HMRC's way of spreading Self Assessment tax across the year. Each instalment is half of your previous year's tax bill (including Class 4 National Insurance but not Student Loan repayments). They are due on 31 January (alongside any balancing payment for the year just ended) and 31 July.

You must make payments on account if your last Self Assessment bill was more than £1,000 and less than 80% of your total tax was deducted at source — for example through PAYE. If most of your tax is already collected by an employer, you are usually exempt.

If you expect your next year's income to be lower, you can ask HMRC to reduce your payments on account by submitting SA303 or through your online Personal Tax Account. Reduce them only if you are confident — understating triggers interest on the shortfall.

When the year ends, you pay any remaining balance (a 'balancing payment') or receive a refund if you overpaid. Keep your January and July deadlines in your calendar alongside the 31 January filing deadline for online returns.

## Related

- [When is the Self Assessment deadline?](https://moneyguide.org.uk/answers/when-is-the-self-assessment-deadline/)
- [Do I need to file a tax return?](https://moneyguide.org.uk/answers/do-i-need-to-file-a-self-assessment-tax-return/)

## Primary source

gov.uk/understand-self-assessment-bill/payments-on-account

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.