Diploma in Professional Accounting
Diploma for Financial Advisers
Member of London Institute of Banking and Finance

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If you are self-employed in the UK, you might be asking: can self employed pay tax monthly? The good news is, yes – there are options to spread the cost of your tax bill instead of paying it all in one go.

How self-employed normally pay tax

Self-employed people usually pay Income Tax and National Insurance through the Self Assessment system. Normally, this means paying twice a year:

• 31 January – main payment plus first payment on account
• 31 July – second payment on account

This can feel like a big lump sum, which is why many ask: can self employed pay tax monthly instead?

Paying tax monthly with HMRC

HMRC offers a Budget Payment Plan which lets you pay your Self Assessment tax bill weekly or monthly by Direct Debit. You choose how much to pay, and these payments go towards your next tax bill.

When the deadline comes, if you’ve already paid enough, you may have little or nothing left to pay. If you’ve overpaid, you can request a refund.

You can read more and set up a plan here: Pay your Self Assessment tax bill weekly or monthly.

What if you cannot pay on time?

If you cannot pay your bill in full, you may be able to set up a Time to Pay arrangement with HMRC. This allows you to spread the cost over monthly instalments, but interest is charged.

Conclusion

So, can self employed pay tax monthly? Yes. By setting up a Budget Payment Plan, you can stay on top of your tax bill and avoid large lump sum payments. It’s a simple way to manage your cash flow and stay in control.

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