Self employed – when do i pay tax?

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If you are self-employed in the UK, your main tax payment is due by 31 January every year. If your tax bill is over £1,000, you will also need to make a second payment by 31 July.

Going self-employed is exciting, but trying to figure out HMRC’s rules can feel like a massive headache. Fortunately, once you understand how the timeline works, it becomes much easier to manage. Here is a simple guide to exactly when you need to pay your tax and file your paperwork.

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Understanding the UK Tax Year

To understand when you pay, you first need to understand the UK tax year. Unlike a normal calendar year, the tax year runs from 6 April to 5 April the following year.

Every deadline you have as a self-employed person revolves around these dates. For example, if you earned money between 6 April 2024 and 5 April 2025, you are paying tax on that specific chunk of time.

The Two Big Payment Dates

When you work for an employer, your tax is taken out of your wages every month. When you are self-employed, you save up your tax yourself and pay it in large chunks. There are two dates you need to highlight in your calendar:

• 31 January: This is your biggest deadline. By midnight on this date, you must pay your final tax bill for the previous tax year.
• 31 July: This is your second payment deadline.

What are “Payments on Account”?

If your tax bill for the year is over £1,000, HMRC will usually ask you to pay your tax in advance for the next year. These are called “Payments on Account.” They split your estimated tax bill into two halves: you pay the first half on 31 January (alongside your previous year’s bill) and the second half on 31 July.

When Do I Need to File My Tax Return?

You cannot just send HMRC money; you have to tell them how much you earned by submitting a Self Assessment tax return.

• 5 October (Registration Deadline): If this is your very first time being self-employed, you must register for Self Assessment with HMRC by 5 October after the end of the tax year you started in.
• 31 January (Filing Deadline): You must fill out and submit your online tax return by midnight on 31 January. (Yes, this is the exact same day your main tax payment is due—but it is highly recommended to file your return months earlier so you know exactly how much money you need to save!).

What Happens If I Miss the Deadline?

HMRC is very strict about these dates. If the clock strikes midnight on 31 January and you have not submitted your online tax return, you will be hit with an automatic £100 fine—even if you do not actually owe them any tax. If you pay your tax late, they will also start charging you interest on the money you owe.

A Quick Summary Checklist

To keep yourself out of trouble, just follow this timeline:

1. 5 October: Register for Self Assessment (if it’s your first year).
2. 6 April: The tax year ends. Start getting your receipts and income records together.
3. 31 January: Submit your online tax return and pay your main tax bill (plus your first advance payment, if applicable).
4. 31 July: Pay your second advance payment (if applicable).

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