Self Assessment Tax Return

How to pay your Self Assessment Tax

Self assessment tax is due by 31 January following the end of the tax year. HMRC accepts payment by online or telephone banking (same day via Faster Payments), debit card at gov.uk, BACS, CHAPS, direct debit and cheque. Every payment needs your 10-digit UTR followed by the letter K. If your previous year's bill exceeded £1,000, payments on account are also due on 31 January and 31 July.

By Jordan Macey MAAT Reviewed by Noor Fiaz Updated 16 Apr 2026 6

Key takeaways

The balancing payment plus first payment on account are due by 31 January, with the second payment on account due by 31 July each year.
Payments on account are each 50% of the previous year's Self Assessment bill and apply when that bill exceeded £1,000 with less than 80% collected at source.
The payment reference for all Self Assessment payments is the 10-digit Unique Taxpayer Reference followed by the letter K, giving an 11-character code.
Online and telephone banking via Faster Payments clears the same day, BACS and debit card payments take three working days, and cheques take five working days by post.
HMRC charges late payment interest at the Bank of England base rate plus 2.5%, with additional surcharges of 5% at 30 days, six months and twelve months overdue.

Self Assessment Overview + Deadlines

You may already be familiar with the process of paying your Self Assessment tax bill.

Yet, it's always helpful to have a guide on hand—one that you can look over just before you make your payment, so you can be sure that you haven't missed out on important details that can put you at risk of incurring a penalty.

Submission of Self Assessment tax return: You need to submit your online tax returns by 31st January. Paper returns are due earlier; these must be filed by 31st October.
Payment: Any personal tax due for the previous tax year (6th April-5th April) must be paid up by 31st January. This means that your 2021/22 tax year must be paid up by 31st January 2023.
Payments on Account: "Payments on account" are advance payments for your tax bill that are spread out across the year. You'll need to make two payments each year, and these are due on 31st July and 31st January.

Tip: If the payment deadline falls on a public holiday, make sure that your payment is submitted by the final working day.

Pay with Debit or Credit Card

To make your payment, use your 11-character payment reference (that's your 10-digit Unique Tax Reference (UTR) followed by the letter 'K'). Your payment is accepted on the day of payment, and not when it is received.

Pay at Bank or Building Soceity

Making a payment at your bank or building society branch is a viable option, only if you're getting paper statements from HMRC and have kept your HMRC paying-in slip. Payments are accepted on the day you make your payment (if it is made on a weekday).

Pay via bank transfer

Transfers can be made using Faster Payments, CHAPS and BACS using your 11-character payment reference.

BACS payments usually take about three working days to be processed, while payments made using CHAPS are typically cleared on the same working day. Faster Payments are usually cleared on the same day, including weekends and bank holidays.

Tip: Be sure to check in with your bank about the processing time if you're paying from abroad, as a longer duration of time might be required for the payment to clear.

Pay by Direct Debit

You can set up a direct debit through your HMRC online account using your 11-character payment reference.

You'll need to set up single payments each time you want to make a payment. For example, if you're making a payment on account, you'll have to set up a direct debit twice-one for 31st January, and another for 31st July.

It can take up to five working days for the payment to clear for the first time you set a debit up. Subsequent payments will take up to three working days to clear, provided that the same bank details are used.

Pay by Cheque

You should make the cheque out to "HM Revenue and Customs only", followed by your UTR.

You'll also need to include your HMRC paying-in slip. It can take up to three working days for the cheque to clear, and you need to keep in mind to factor in additional time for mail delivery.

Your cheque should be sent to:

HMRC

Direct

BX5 5BD

Making payments for Self Assessment

Paying your Self Assessment tax bill through your tax code

To pay your Self Assessment tax bill through your tax code, you'll need to meet the following conditions:

You owe less than £3,000 on your tax bill
You already pay tax through PAYE. For example, you're employed or you get a workplace pension
You've submitted your paper tax return by 31st October, or your online tax return online by 30th December

If you meet these conditions, HMRC will automatically collect what you owe through your tax code, unless you've asked them not to do so on your tax return.

Tip: Do note that payments made at the post office or using a personal credit card are no longer permitted.

How will I know if my payment has been received?

You can check your payment status using your HMRC online account. It should indicate that you've paid up between three to six working days after you've made your payment.

What can I do if I'm unable to make my payment on time?

Being unable to pay up your tax bill is a stressful situation to be in, but there are steps you can take to set things right.

You'll need to get in touch with HMRC as soon as possible to explain why you're unable to make your payment. Before you contact HMRC, make sure you have your UTR number and bank account details on hand, as well as an estimate of how much you're able to pay upfront.

Depending on your circumstances, HMRC may agree to a payment plan. In this case, you won't be charged payment penalties (unless you miss a payment), but HMRC late payment interest rates will still apply.

And even if you know beforehand that you're not able to pay up your Self Assessment tax bill, it's still important that you file your tax returns on time. This indicates that you're willing to set things in order, and will improve your chances of getting a payment plan set up with HMRC.

Setting up a budget payment plan

Setting up a budget payment plan is a viable option if you are up to date with your previous Self Assessment payments.

With this option, you'll be making regular payments in advance instead of a lump-sum payment. You can decide how much you want to pay each week or month. If your payments over the year aren't sufficient to cover the total tax due, you'll need to pay up the outstanding amount by the payment deadlines.

To set this up, use your HMRC online account. On the Direct Debit Section, choose the budget payment option when filling in the Direct Debit form.

A note on Making Tax Digital for Income Tax

Making Tax Digital (MTD) for Income Tax will be rolled out starting 6 April 2023. If you're a sole trader or landlord with an annual income exceeding £10,000, you'll need to abide by the MTD requirements for the 2023/24 tax year onwards.

Presently, you're still required to file your Self Assessment for 2021/22 and 2022/23, unless you've applied for the MTD for income tax pilot scheme (and have followed the requirements of the scheme).

There hasn't been any announcements made on whether the MTD rollout will affect how income tax payments are made.

‍

Frequently asked questions

What payment methods does HMRC accept for Self Assessment tax?

HMRC accepts online or telephone banking (Faster Payments for same-day clearance), BACS bank transfer (three working days), CHAPS (same day, bank charges apply), debit card via gov.uk (three working days), direct debit through your HMRC online account, and cheque by post (allow five working days plus postage). Personal credit cards and Post Office counter payments are no longer accepted for Self Assessment.

How long does each Self Assessment payment method take to clear?

Faster Payments through online or telephone banking clears the same day, including weekends and bank holidays. CHAPS also clears the same working day but incurs bank charges. BACS transfers and debit card payments at gov.uk take three working days. Direct debits take up to five working days the first time and three working days for subsequent payments. Cheques require three working days to clear plus postal delivery time.

What are payments on account and when are they due?

Payments on account are advance payments toward your next Self Assessment bill. Each payment is 50% of the previous year's tax liability. They apply when your bill exceeded £1,000 and less than 80% was collected at source through PAYE. The first payment on account is due by 31 January alongside any balancing payment, and the second is due by 31 July. A final balancing payment settles any remaining amount the following 31 January.

What reference number do I use when paying Self Assessment tax?

Use your 10-digit Unique Taxpayer Reference (UTR) followed by the letter K, making an 11-character code. For example, if your UTR is 1234567890, the payment reference is 1234567890K. This reference must appear on every payment regardless of method. Using the wrong reference can delay HMRC matching the payment to your account, which risks late payment charges even if you paid on time.

What happens if I cannot afford to pay my Self Assessment bill?

Contact HMRC's Self Assessment Payment Helpline on 0300 200 3822 as soon as possible. If your bill is under £30,000 and within 60 days of the payment deadline, you may be able to set up a Time to Pay arrangement online through your personal tax account. HMRC agrees a repayment schedule, and late payment penalties are suspended provided you keep to the plan. Late payment interest at Bank of England base rate plus 2.5% still applies.

What are the penalties and interest for late Self Assessment payment?

HMRC charges late payment interest from the day after the deadline at the Bank of England base rate plus 2.5%. On top of interest, a 5% surcharge applies if the bill is still unpaid after 30 days, a further 5% after six months, and another 5% after twelve months. These surcharges are calculated on the amount outstanding at each trigger point. Filing your return on time even if you cannot pay avoids separate late-filing penalties.

Can I reduce my payments on account using form SA303?

Yes. If you expect your tax bill to be lower than the previous year, you can apply to reduce payments on account by submitting form SA303 to HMRC or adjusting them through your personal tax account online. There is no deadline for the claim, but it should be made before the payment date to avoid overpaying. If you reduce too far and the actual bill is higher, HMRC charges interest on the underpaid amount from the original due date.

How does a budget payment plan work for Self Assessment?

A budget payment plan lets you spread your Self Assessment bill across the year with weekly or monthly direct debit payments through your personal tax account. You must be up to date on all previous returns and payments to set one up. You choose the amount per instalment, and if total payments fall short, the balance is still due by the standard deadline. No penalties apply provided you meet the shortfall on time.