There are two self assessment tax payment dates you need to pay your tax by. The method of payment usually involves two payments on account of your tax liability as follows…

  • one on 31 January during the tax year and
  • another on 31 July following the tax year.

These are based on the net income tax and Class 4 NIC liability of the previous tax year .

A final payment (or repayment) is due on 31 January following the tax year.

Thereafter, there is a 5% surcharge on any taxes that remain unpaid after 28 February, and a further 5% on taxes not paid after 31 July.

Self assessment tax payment

For example…

If your total tax liability for 2012/13 is £5,000 and for 2013/14 is £10,000, you will make payments for 2013/14 as follows…

  • on 31/1/13 – £2500 (half of the 2012/13 total)
  • on 31/7/14- £2500 (half of the 2012/13 total)
  • on 31/1/15 – £10,000 (being the £5000 balance due for 2013/14 and £5000 – half of 2013/14 – on account of 2014/15)

In calculating the level of instalments any tax due on capital gains of the previous year is ignored. All CGT is paid as part of the final payment due on 31 January following the end of the tax year.

The payments on account are not required if…

  • income tax and NIC liability for the previous year (net of tax deducted at source) is below £1000 or
  • more than 80% of the income tax and NIC liability for the previous year was tax deducted at source.

You can also apply to have the payments on account reduced if you expect your liability for a tax year to be less than the previous year.

Contact us if you’d like any help with reducing your self assessment tax payments or with your tax returns.