MTD payment dates

Making Tax Digital changes how you report income, not when you pay tax. Under MTD for Income Tax, the payment deadlines remain the same as traditional Self Assessment.

• 31 January (each year): Deadline to pay any tax still owed for the prior tax year (the balancing payment). This is also when the first payment on account for the current year is due.
• 31 July: Deadline for the second payment on account for the current year.

Worked example

If you owed £2,000 for 2024/25, you would pay that £2,000 by 31 January 2026, plus a 50% advance payment (£1,000) towards 2025/26 tax. The second £1,000 payment on account would be due by 31 July 2026.

Each payment on account is normally half of the previous year's tax bill. Any remaining balancing payment — if last year's tax was higher than the two instalments you already paid — is settled by the following 31 January.

Direct Debit timing

If you pay by Direct Debit, allow processing time. The first setup takes about five working days; later payments usually take around three working days. Schedule the payment a few days before the due date so HMRC can collect it on time.