How Do I Pay My Income Tax to HMRC? (UK Companies short guide)

If you’re self-employed, a landlord, or have income outside of PAYE, you’ve probably met the delightful January deadline known as Self Assessment. That moment where the “I’ll deal with it later” voice finally gives in.

And once the return is filed (hurrah!), you still need to pay your Income Tax and often Class 2 and Class 4 National Insurance too.

Here’s how to do it step-by-step, so you can get it sorted, tick it off, and breathe easy.

📅 Step 1: Know your payment deadline

You need to pay your Income Tax by 31 January following the end of the tax year. If your bill is over £1,000, you may also have to make Payments on Account.

💡 There’s also a second payment due by 31 July — more on that in a sec.

💷 Step 2: Know how much you owe

Once you’ve filed your Self Assessment tax return, HMRC will show you:

• Your total Income Tax due

• Any Class 2 or 4 National Insurance

• Payments on Account (if applicable)

To view your bill:

• Log in to your HMRC Personal Tax Account

• Go to “Self Assessment” → “View your latest calculation”

• Download or screenshot it if you’re likely to forget it next week (we’ve all been there)

💳 Step 3: Pay your Income Tax to HMRC

There are a few ways to pay — pick the one that works best for you:

🔹 1. Bank Transfer (Faster Payments, BACS or CHAPS)

• Use your Self Assessment UTR (Unique Taxpayer Reference) followed by the letter K
  Example: 1234567890K

• Pay to HMRC’s Self Assessment account

🔹 2. Debit or Corporate Credit Card

Pay your Income Tax online
(Note: You can’t use a personal credit card anymore)

🔹 3. Direct Debit

Set this up via your online HMRC account. Be aware that it can take a few working days to clear, especially if it’s your first time.

🧠 Wait, what are “Payments on Account”?

If your last tax bill was over £1,000 and you don’t have most of your income taxed at source (like PAYE), HMRC assumes next year will be similar.

So they ask you to make two advance payments for the next year:

• 50% by 31 January

• 50% by 31 July

If you earn less next year, you can ask HMRC to reduce it. But be careful….underestimating can lead to interest and late payments down the line.

🚨 Common mistakes to avoid

• Missing the deadline – even if you’ve filed your return, the payment needs to be in on time

• Using the wrong reference – always use your UTR with a K on the end

• Not budgeting for the second payment in July – it sneaks up on people!

✨ Want to avoid the panic next year?

We help small business owners and freelancers stay on top of taxes all year round, not just in January.

We’ll remind you of deadlines, help with planning, and make sure nothing is missed. No last-minute stress, no late-night tax Googling, just calm and clarity.

Book a call if you’d like help getting organised and staying ahead.

Qualified, friendly, and fully in your corner. Supporting business mums and ambitious service-based owners with bookkeeping that works for real life (not just tax season).