How to Pay Your Income Tax Bill: 2026/27 Guide

Updated for 2026/27. Most people with an Income Tax bill outside PAYE pay through Self Assessment. Use HMRC’s official payment service, the correct reference and enough processing time. Paying the wrong HMRC account or reference can leave the bill appearing unpaid even when money has left your bank.

Key Self Assessment payment dates

• 31 January: balancing payment for the previous tax year and usually the first payment on account for the current year
• 31 July: second payment on account

For 2026/27, the balancing payment is normally due by 31 January 2028. A first payment on account for 2027/28 may be due at the same time, with the second on 31 July 2028. Capital Gains Tax on UK property and some other liabilities have separate payment routes and deadlines.

Check how much is due

Sign in to the Self Assessment account or Personal Tax Account and review the latest statement, submitted return, payments on account, credits, interest and earlier allocations. A return calculation can differ from the current amount payable where HMRC has used credits or added interest.

Your payment reference

For a normal Self Assessment payment, the reference is generally the 10-digit Unique Taxpayer Reference followed by the letter K. Confirm it in HMRC’s official payment instructions before sending money. Do not use a PAYE, VAT or Corporation Tax reference for a personal Self Assessment liability.

Ways to pay

HMRC’s available methods can include:

• Online or mobile bank transfer through the official GOV.UK service
• Faster Payments, CHAPS or Bacs bank transfer
• Personal or corporate debit card through the official service
• Direct Debit
• Payment at a bank or building society where the required paying-in slip and conditions are met
• Cheque by post using the current HMRC instructions
• A Budget Payment Plan for voluntary advance payments toward a future bill

Processing time varies. Direct Debit set-up, Bacs and post can take longer than immediate online banking. Initiate payment early around weekends and bank holidays and keep the confirmation.

Can I pay by credit card?

HMRC does not normally accept personal credit cards for Self Assessment. Some business-card payments may incur a fee. Check the official service for current accepted cards and charges rather than using a third-party payment link.

Payments on account

Payments on account are advance instalments toward the next year’s Income Tax and Class 4 National Insurance where applicable. Each is normally half the previous year’s relevant liability. They are not usually required where the qualifying amount is below the statutory threshold or most tax was collected at source.

If current-year income will genuinely be lower, you can apply to reduce payments on account. Reducing them too far creates interest on the shortfall, so base the claim on a reasonable forecast and revise it if circumstances change.

Budget Payment Plan

Eligible taxpayers who are up to date can make weekly or monthly Direct Debit payments toward the next Self Assessment bill. This helps budgeting but does not change the legal due date; any remaining balance must still be paid by the deadline.

If you cannot pay in full

Contact HMRC as early as possible. An online Time to Pay arrangement may be available where the debt, filing status and other conditions fit HMRC’s current criteria. Larger, older or more complex debts require direct discussion. HMRC assesses income, expenditure, assets and ability to pay.

Interest normally continues under a payment plan, and late-payment penalties may apply. Filing the return on time remains important even if payment is unaffordable, because filing and payment penalties are separate.

Late payment consequences

HMRC charges late-payment interest from the due date. Self Assessment late-payment penalties can arise at statutory points after the deadline, based on the unpaid amount, with further penalties later. Paying as much as possible reduces the balance on which interest and percentage penalties are calculated.

Paying from overseas

Use HMRC’s current overseas bank details, IBAN/BIC instructions and the correct reference. Allow for bank processing time, currency conversion and fees so HMRC receives the full sterling amount. Do not copy bank details from an old article or unsolicited email.

Payment allocation problems

If a payment is missing, gather the bank confirmation, date, amount, receiving account and reference. Check whether it was allocated to another tax or year. Contact HMRC with evidence rather than paying twice immediately unless a deadline requires urgent protective action.

Tax-payment scams

HMRC does not demand payment in gift cards, cryptocurrency or transfer to a personal account. Do not use banking details from an unexpected text, email or phone call. Navigate directly to GOV.UK, verify the liability in your account and independently contact HMRC if threatened with immediate arrest.

Example

Sam’s 2026/27 balancing payment is £3,200 and each 2027/28 payment on account is £1,600. On 31 January 2028, £4,800 is normally due; another £1,600 follows on 31 July 2028. If Sam expects a genuine fall in profit, a supported reduction claim may be appropriate.

Payment checklist

1. File the return and check the live statement.
2. Confirm the correct tax type and reference.
3. Select a method with sufficient processing time.
4. Save the payment confirmation.
5. Check allocation after processing.
6. Contact HMRC early if full payment is impossible.
7. Review payments on account against current-year profit.

Use HMRC’s official Self Assessment payment service and guidance on difficulty paying HMRC. Our guide to payments on account explains the instalments in more detail.

Frequently asked questions

Can someone else pay my bill?

Usually yes, provided the correct official route and reference are used. The liability remains yours until HMRC allocates the payment.

Does filing automatically take payment?

No. Submitting a return and paying the bill are separate steps unless you have arranged an applicable collection method.

Can HMRC collect it through my tax code?

Some smaller eligible liabilities may be coded out if conditions and filing timing are met, but this is not automatic.

This guide is general information. Always confirm live bank details, methods and deadlines on GOV.UK.