Payment Deadlines and Schedule
Missing a tax payment deadline can result in penalties and interest charges. This article explains when your payments are due and how to plan for them throughout the year.
The three key payment dates
If you make payments on account, there are three dates to remember each year:
| Payment | When it's due | What it covers |
|---|---|---|
| First payment on account | 31 January during the tax year | 50% of next year's estimated tax bill |
| Balancing payment + Second payment on account | 31 January following the end of the tax year | Settlement of previous year + 50% of next year's estimated tax bill |
| Second payment on account | 31 July following the end of the tax year | Remaining 50% of current year's estimated tax bill |
The January payment is typically the largest because it includes both your balancing payment for the previous year and your first payment on account for the following year.
Payment calendar for the tax year
Here's how the payment schedule works for the 2025/26 tax year:
31 January 2026
- Balancing payment for 2024/25 (if you owe any additional tax)
- First payment on account for 2025/26
31 July 2026
- Second payment on account for 2025/26
31 January 2027
- Balancing payment for 2025/26 (if you owe any additional tax)
- First payment on account for 2026/27
This pattern repeats each year.
If you don't make payments on account
If your tax bill is below £1,000 or you've paid more than 80% of your tax through other sources (like PAYE), you won't make payments on account.
In this case, you have just one payment deadline:
31 January following the end of the tax year - Full tax bill for the previous year
Planning for tax payments throughout the year
Because tax isn't deducted from rental income automatically, you need to plan ahead to have funds available when payments are due.
Consider setting aside money each month to cover your tax bill. If you owe £6,000 per year, that's £500 per month.
Some landlords find it helpful to transfer rental income into a separate account and keep a portion there for tax payments.
Tip
If you miss a quarterly deadline for Making Tax Digital, HMRC's new penalty system counts late submissions over a rolling 24-month period. Occasional slips won't trigger fines immediately, but missing payment deadlines can result in immediate penalties and interest.
Grace periods and processing time considerations
Payments must clear into HMRC's account by the deadline. There's no grace period.
If you're paying close to the deadline:
- Use online banking or debit card for same-day processing
- Avoid cheque payments (they take at least three working days)
- Make the payment before your bank's cut-off time (usually 2pm or 3pm)
What happens if you miss a deadline
Missing a payment deadline triggers:
- Interest charges on the unpaid amount (from the deadline date until you pay)
- Late payment penalties if the amount remains unpaid for 30 days or more
The penalties escalate the longer the payment remains outstanding.
See Late payment consequences for full details.
Setting up payment reminders
HMRC doesn't send payment reminders automatically. It's your responsibility to remember the deadlines.
Set calendar reminders for:
- 20 January (to ensure you pay before the 31 January deadline)
- 20 July (to ensure you pay before the 31 July deadline)
You can also set up Direct Debit through your HMRC online account to pay automatically.
Note
Provestor doesn't send payment reminders. You must track deadlines yourself or set up reminders through your calendar or HMRC account.
For more information, see HMRC's guidance on Self Assessment payment deadlines.