When to Pay Tax When Self-Employed

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If you’re self-employed in the UK, knowing when to pay tax when self-employed is just as important as knowing how much you owe. Missing a deadline can lead to penalties, so it’s good to be clear on the dates.

Key Deadlines for Self-Employed Tax

• 31 October – If you send your Self Assessment tax return by post, it must reach HMRC by this date.
• 31 January – This is the main deadline if you file online. By this date, you must:
  • File your Self Assessment tax return for the previous tax year.
  • Pay any Income Tax you owe.
  • Pay your first Payment on Account (an advance payment towards next year’s tax).
• 31 July – If you make Payments on Account, this is when the second instalment is due.

The UK tax year runs from 6 April to 5 April, so for example:

• The 2024/25 tax year ends on 5 April 2025.
• Paper returns must be sent by 31 October 2025.
• Online returns and tax payments must be done by 31 January 2026.

Payments on Account Explained

If your tax bill is more than £1,000, HMRC usually asks you to pay in advance. These are called Payments on Account. They are split into two equal payments – one in January and one in July.

What Happens if You Miss the Deadline?

HMRC charges interest and penalties if you’re late, so it’s best to file and pay on time. Setting reminders or using accounting software can help you stay on top of it.

Final Thoughts

Being self-employed means you’re responsible for your own tax. The three dates to remember are 31 October (post), 31 January (online), and 31 July (second payment). Staying organised makes tax time much less stressful.

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