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How to pay your Self Assessment tax bill

Paying HMRC

How to pay your Self Assessment tax bill

Knowing how much you owe is one thing. Paying HMRC correctly and on time is another, and payments sent with the wrong reference are a common cause of letters and penalties.

AABy Asim AbbasUpdated 11 November 20263 min read
Paying a Self Assessment bill online
In 30 seconds
  • Balancing payment and first POA due 31 January 2027
  • Use your UTR followed by K as the reference
  • Faster Payments usually clear the same or next day
  • Budget Payment Plans let you pay in advance

There are several ways to pay, and some take days to clear, so leaving it to 31 January is risky.

This guide covers payment methods, timing, budget payment plans and what to do if you can’t pay.

When to pay

PaymentDue
Balancing payment for 2025/2631 January 2027
First payment on account for 2026/2731 January 2027
Second payment on account for 2026/2731 July 2027

31 January 2027 is a Sunday. Payments must still reach HMRC by then, so pay by Friday 29 January if your bank doesn’t process weekend payments.

Ways to pay

  • Online or telephone banking: Faster Payments usually arrive same or next day
  • CHAPS: same day if sent within bank hours
  • BACS: three working days
  • Debit card or corporate card online: personal credit cards aren’t accepted
  • Through the HMRC app: including open banking
  • Direct Debit: set up at least five working days before, or three for existing ones
  • Through your tax code: for debts under £3,000 if you file online by 30 December

Self Assessment tax calculator

Check what you owe.

Calculate

Getting the reference right

Your payment reference is your 10-digit UTR followed by the letter K. Using the wrong reference, or a spouse’s, can mean HMRC doesn’t allocate the payment, leading to reminders and penalties while it’s traced.

For example

Tom owes £4,800 balancing payment and £2,400 first payment on account on 31 January 2027, £7,200 in total. He sends a Faster Payment on 28 January from his banking app with the reference 1234567890K. It reaches HMRC the same day and appears in his account within a few days.

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Budget Payment Plans

If you’re up to date, you can set up a Budget Payment Plan to pay weekly or monthly Direct Debits towards your next bill. You choose the amount and can pause it. It’s a good way to avoid a January shock.

If you can’t pay

Set up a Time to Pay arrangement before penalties apply. Plans for up to £30,000 can be set up online. See our Time to Pay guide.

Reducing payments on account

If your income has fallen, you can apply to reduce payments on account. If you reduce too much, interest is charged on the shortfall. See payments on account.

See HMRC’s guide to paying your Self Assessment bill, or use our Self Assessment calculator.

What should I do next?

Check your balance

In your HMRC account.

Use UTR plus K

As the reference.

Pay early

31 Jan 2027 is a Sunday.

Can’t pay?

Time to Pay guide.

Frequently Asked Questions

What is my Self Assessment payment reference?

Your 10-digit UTR followed by the letter K.

Can I pay HMRC by credit card?

Not with a personal credit card. Debit cards and corporate cards are accepted.

How long do payments take?

Faster Payments usually arrive the same or next day. BACS takes three working days.

Can I pay in instalments in advance?

Yes, with a Budget Payment Plan by Direct Debit.

When is the 2025/26 tax due?

31 January 2027, with a second payment on account on 31 July 2027.

Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.

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About the Author

Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.

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