HMRC has reminded Self Assessment customers that the first payment on account deadline for the tax year is just days away, while noting that submitting a tax return early could give taxpayers six months to plan for any amount owed.
The reminder, posted on X, stated: "There's one week to go for Self Assessment customers to make their payment on account. While you're making your payment, why not also submit your 25-26 tax return? This means you'll have six months to budget for any tax you owe."
Payment on Account Explained
Payments on account allow Self Assessment taxpayers to split their tax bill into two instalments instead of paying the full amount at once. The deadlines are midnight on January 31 and July 31 each year.
Taxpayers who need to make payments on account can see the amount due for each deadline on their Self Assessment statement or via their online HMRC account. Missing these deadlines can result in daily interest charges and late payment penalties, which increase the longer the bill remains unpaid.
Penalties for Late Filing
Filing a tax return after the January 31 deadline also triggers penalties. Even a few hours late—on the early morning of February 1—incurs a £100 penalty. An additional £10 per day is added for the first three months, up to £900, with further penalties after that.
Self Assessment tax returns can be filed any time after April 5, the end of the tax year. HMRC guidance states that earlier filing allows taxpayers to know what they owe sooner and budget accordingly. If the bill is more than can be paid by January 31, early filing provides more time to arrange help.
Seeking Help and Time to Pay Agreements
Citizens Advice recommends calling the Income Tax Helpline at 0300 200 3300 as soon as possible, noting that the best time to call is between 8am and 11am on Wednesdays, Thursdays, and Fridays, though queues may still occur.
Taxpayers can request a 'time to pay agreement' with HMRC, which does not change the amount owed but may allow more time to pay or smaller instalments. During the call, taxpayers must explain in detail why they cannot pay, including answers about spending, finances, income, and household bills.
Citizens Advice adds: "It's usually easier to get an agreement before the deadline rather than after you've missed it. You might still be able to get one after the deadline, so it's always worth calling HMRC. You'll be charged interest for however long it takes you to pay off your income tax debt. This starts from the first day the payment is late."
