How payments on account work
Payments on account are advance payments towards your next tax bill. Each one is half of your previous year’s Self Assessment bill. For the 2026/27 tax year they are due on 31 January 2027 and 31 July 2027, both based on your 2025/26 bill.
| Rule | Figure |
|---|---|
| No payments on account if last year’s Self Assessment bill is under | £1,000 |
| No payments on account if tax collected at source (PAYE etc.) was at least | 80% of your total tax |
| Size of each payment | 50% of last year’s bill |
| What counts | Income tax and Class 4 National Insurance |
| Not included | Capital gains tax, student loan repayments |
Why the first January is so big
In your first year with payments on account, 31 January brings the whole of last year’s tax plus 50% of it again. Example: a 2025/26 bill of £3,000 with no previous payments on account means £3,000 + £1,500 = £4,500 on 31 January 2027, then £1,500 on 31 July 2027.
How the calculator works
Self Assessment bill = income tax + Class 4 NIC − tax deducted at source. Balancing payment = that bill + capital gains tax and other items − payments on account already made for 2025/26. If the bill is £1,000 or more and less than 80% was collected at source, each 2026/27 payment on account is 50% of the bill.
FAQ
When are payments on account due for 2026/27?
On 31 January 2027 and 31 July 2027. Each is half of your 2025/26 Self Assessment bill.
Do I have to make payments on account?
Yes, unless your last Self Assessment bill was under £1,000 or at least 80% of your tax was collected at source, for example through PAYE.
How much will I pay on 31 January 2027?
Your 2025/26 balancing payment plus your first 2026/27 payment on account. If your 2025/26 bill was £3,000 and you paid £900 twice, that is £1,200 + £1,500 = £2,700, then £1,500 on 31 July 2027.
Is student loan included in payments on account?
No. Student loan repayments and capital gains tax are paid with the balancing payment only, so they never increase your payments on account.
Sources (checked 5 November 2026): GOV.UK “Understand your Self Assessment tax bill: payments on account” (gov.uk/understand-self-assessment-bill/payments-on-account); Taxes Management Act 1970 s59A and the Income Tax (Payments on Account) Regulations 1996 (£1,000 de minimis); GOV.UK “Self Assessment tax returns: deadlines”.