Key takeaways
- You can pay Self Assessment tax at any time before the deadline, in one payment or several.
- A Budget Payment Plan lets you pay weekly or monthly by Direct Debit towards your next bill, if you are up to date with your last one.
- Money paid early is held on your Self Assessment account and set against your next bill; if you overpay you can ask for a refund.
- Payments on account for 2026/27 are due by 31 January 2027 and 31 July 2027 and can be paid before those dates.
- Always use your 11-character payment reference, your 10-digit UTR followed by K.
You can pay your Self Assessment tax early at any time before the deadline, either as one-off payments or through weekly or monthly Direct Debits under a Budget Payment Plan. HMRC holds what you pay on your account and uses it against your next bill, so you have less, or nothing, to pay on 31 January or 31 July.
Paying early does not change your deadlines or the amount of tax you owe. It spreads the cost, and it avoids the interest and penalties that come with paying late. This guide covers Self Assessment for individuals, sole traders and landlords.
Ways to pay Self Assessment early
GOV.UK says you can pay what you owe in instalments before the deadline, and you can make more than one payment towards your bill. These methods all work for early payments:
| Method | How it works for early payments | Time to reach HMRC |
|---|---|---|
| Budget Payment Plan | Regular weekly or monthly Direct Debits towards your next bill, set up in your HMRC online account | Collected on the schedule you choose |
| Approve a payment through your online bank account | Pay through GOV.UK or the HMRC app and approve it in your banking app; you can choose a date to pay, as long as it is before the payment is due | Usually instant, can take up to 2 hours to show in your bank account |
| Online or telephone banking (Faster Payments) | Pay HMRC's account whenever you like, as often as you like | Usually the same or next day, including weekends and bank holidays |
| Single Direct Debit | Set up a separate single payment through your HMRC online account each time you want to pay | 5 working days the first time, 3 working days after that with the same bank details |
| Personal debit card online | One-off payment; no fee on a personal debit card, a non-refundable fee on corporate cards, and personal credit cards are not accepted | Accepted on the date you pay |
| Cheque by post | Post a cheque to HMRC with your payment reference on the back; you can send more than one | Must reach HMRC by the deadline |
Whichever method you use, quote your 11-character payment reference: your 10-digit Unique Taxpayer Reference (UTR) followed by the letter K. With the wrong reference, your payment may be delayed or used against a different tax bill you owe. Our guide on how to pay your Self Assessment tax covers bank details and each method step by step. Source: GOV.UK Pay your Self Assessment tax bill.
Budget Payment Plan: paying weekly or monthly
A Budget Payment Plan is HMRC's own way to save towards your next Self Assessment bill by Direct Debit. The money you pay goes against your next tax bill, so you have less to pay at the deadline.
- Sign in to your HMRC online account.
- Select 'Direct Debit' and choose the Budget Payment Plan option.
- Choose weekly or monthly payments and how much you want to pay.
The rules are simple:
- You must be up to date with the payments from your last Self Assessment bill before you can set one up.
- If what you have paid does not cover your next bill, you pay the difference by the deadline.
- If you have paid more than the bill, you are in credit and can ask for a refund.
- You can pause payments for up to 6 months if you need to.
To choose an amount, estimate your bill first. Our self-employed tax calculator and guide to how much tax to put aside will help. Source: GOV.UK.
A Budget Payment Plan is for bills that are not yet overdue. If you have already missed a deadline or cannot pay what you owe, you need a payment plan (a Time to Pay arrangement) instead, covered below.
Paying your payments on account early
If your Self Assessment bill is £1,000 or more and less than 80% of your tax was collected at source, you make two payments on account towards the next year, each half of the previous year's tax, due by 31 January and 31 July (GOV.UK). For the 2026/27 tax year these fall on 31 January 2027 and 31 July 2027.
You can pay either of them before the due date using any of the methods above, and a Budget Payment Plan can build up the money for both. If you think your income will fall, you can also ask HMRC to reduce your payments on account, online or on form SA303, but HMRC charges interest if the final bill turns out higher than the reduced amount. See our guide to payments on account.
What happens to money you pay early
Early payments sit on your Self Assessment account until a charge is due. HMRC's Self Assessment Manual explains that overpayments are held on your record until you claim them or they are set against a new charge, for example when your next payment on account falls due (SAM111010).
To check that a payment has arrived, sign in to your HMRC online account. Electronic payments made in the last 7 days show in the 'Your balance' section, and processed payments appear under 'View payments and credits', which can take up to 7 days (GOV.UK).
HMRC's payment guidance presents paying early and in instalments as a way to spread the cost, and does not offer a discount for it. HMRC does pay repayment interest on some overpayments, currently set at the Bank of England base rate minus 1% with a lower limit of 0.5% (GOV.UK), but the rules on when it applies are detailed, so do not treat an early payment as a savings account.
Paying through your tax code
If you are employed or get a pension, a bill under £3,000 can be collected through your PAYE tax code instead, in equal instalments over the following 12 months. You must already pay tax through PAYE and file your online return by 30 December (30 December 2026 for the 2025/26 return) or a paper return by 31 October (GOV.UK). This is not paying early, but it avoids a lump sum in January.
If you cannot pay on time
If you miss the 31 January 2027 deadline, HMRC charges interest and late payment penalties of 5% of the tax unpaid at 30 days, 6 months and 12 months (GOV.UK). If you cannot pay in full, you may be able to set up a payment plan to pay an overdue bill in monthly instalments. HMRC checks it is affordable, usually asking for around half of what you have left each month after essential outgoings, and there is no fixed time limit on how long it lasts (GOV.UK).
How GoForma can help
GoForma's ACCA and AAT qualified accountants have filed more than 7,000 tax returns. Once we have prepared your return you know the exact figure to pay, early or on time. A one-off Self Assessment tax return is £198 plus VAT with HMRC enquiry support included, and sole trader packages from £22 a month include Self Assessment. GoForma is rated 4.9 on Google from 72 reviews. Book a free consultation.
