9 Easy Ways to Pay Your Self Assessment Tax

Alan Bermingham

10 Years of Expertise in Fintech Innovation

9 min read

How to pay self assessment tax details official payment channels, statutory deadlines, and settlement methods governed by His Majesty’s Revenue and Customs for UK self employed individuals and sole traders. Paying a Self Assessment tax bill online is achievable through approval of bank transfers via Open Banking, Direct Debit, debit card, or corporate credit card. Key statutory payment deadlines include 31 January for balancing payments and the 1st Payment on Account, followed by 31 July for the 2nd Payment on Account. Taxpayers can also set up budget payment plans to spread tax liabilities across weekly or monthly Direct Debit payments prior to submission dates. Utilising Open Banking tax applications like Pie streamlines Self Assessment payments by calculating exact tax liabilities in real time, setting payment reminders, and enabling secure direct bank payments to HMRC.

So, Let Me Explain..

Did you know that knowing how to pay your Self Assessment tax can help you avoid last-minute stress and costly penalties?

We’ve put together a guide to all the ways you can pay your Self Assessment—from online banking to Direct Debit—so you can pick the best method for you.

Whether you're self-employed, a landlord, or have other sources of untaxed income, understanding your payment options can save you time, money, and a lot of hassle.

Let’s make tax season easy and ensure you’re ready for the year ahead with no surprises along the way!

1. Online Banking

Thinking about paying your Self Assessment tax bill via online banking?

It's one of the easiest and quickest ways to get the job done. You can do everything right from your bank’s app or website, skipping all the paperwork and stress of handling paper tax returns.

All you need to do is log into your bank account, set up the payment using HMRC’s sort code and account number, and make sure to include your Unique Taxpayer Reference (UTR).

This little detail ensures your payment is applied correctly and you won’t run into any issues.

The best part? If you're using Faster Payments, your tax payment usually goes through the same day.

So, if you're cutting it close to the payment deadline, it’s a great option. It’s quick, reliable, and helps you stay on top of your tax payments without any last-minute stress!

2. Direct Debit

Setting up a Direct Debit with HMRC is a hassle-free way to handle your Self Assessment tax payments.

Once it’s set up, you don’t have to stress about deadlines—it’s all taken care of automatically, so you can forget about the last-minute panic of filing your tax return.

All you need to do is register through HMRC’s online services and choose your payment method.

After that, your tax payment will be deducted on time every year without you having to lift a finger. Just make sure to set it up a few days before the payment deadline, as it takes a bit of time to process.

While it’s super convenient, some of our clients like to keep an eye on their bank balance just to make sure everything goes smoothly.

It’s a simple way to ensure your Self Assessment tax return and payments are all lined up without any surprises!

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3. Debit or Credit Card Payment

Paying your Self Assessment bill with a debit or credit card?

Easy! It’s a great option if you’re in a pinch or need a bit more flexibility for your outstanding tax.

HMRC accepts most major cards (just no business credit cards), and sometimes there’s a small fee if you go with a credit card.

To get started, just hop onto HMRC’s system, choose payment plan online, and make sure to enter your tax code so it’s credited to the right spot.

This method is especially handy if you’re catching up on a payment on account or managing an unexpected assessment bill. To ensure you understand how these figures reconcile with your annual liabilities, you can also read our detailed guide on balancing payments for UK Self Assessment to manage your cash flow effectively.

A heads-up from our clients: while credit cards can be a quick fix, relying on them every year might mean you’ll pay interest—not ideal. So, while it’s a flexible option, it’s best used as a backup.

4. HMRC App

The HMRC app makes paying your Self Assessment tax super easy—all from your phone!

With just a few taps, you can handle your assessment return and stay on top of your payments without needing paper statements or dealing with bank transfers.

It’s as simple as connecting the app to your bank account, so your tax payment is right at your fingertips.

Once you’re set up, you can use the app to track two payments a year for Self Employment or other income.

One of the best parts? The app helps make sure your payment is applied correctly, so there’s no worry about a wrong reference number slowing things down. Plus, if you ever need help, there’s a quick option to contact HMRC.

Overall, it’s a super convenient way to manage your taxes on the go, avoid charged interest from late payments, and keep track of your next payment due dates with ease. It’s like having your tax to-do list in your pocket!

5. Payment via Telephone Banking

Paying your Self Assessment tax through telephone banking is a great way to go if you prefer handling things over the phone.

Just call your bank, and they’ll guide you through making the payment. You’ll need to have the HMRC account number, sort code, and your Unique Taxpayer Reference (UTR) ready, along with the correct amount for your first payment or second payment if you’re paying in instalments.

For security, make sure you’re calling the official bank number and confirm all transaction details before finalising. It’s also smart to note the bank's processing times—especially if you’re close to the deadline or a bank holiday, as this can delay things a bit.

After the call, jot down any confirmation info to keep with your records, in case there’s a question about the payment later.

This method is reliable and keeps your tax payments organised, without needing to set up a Direct Debit or access online banking. Win win!

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6. Paying at Your Bank or Building Society

Paying Self Assessment tax in person at the bank or building society can be a great option for anyone who prefers a hands-on approach.

It’s straightforward: just bring the payslip from HMRC along with your payment details—including your tax code and Unique Taxpayer Reference (UTR)—and let the teller handle the rest.

Many of our clients choose this method close to the payment deadline because it provides that extra peace of mind with a stamped receipt as proof of payment.

Just keep in mind that bank processing times can vary, so it’s best to give it a few days to ensure everything is settled on time.

7. Cheque by Post

Mailing a cheque to HMRC can be a solid option, but it’s definitely not the fastest.

If you choose this route, you’ll need to write the cheque payable to HM Revenue and Customs and include your Unique Taxpayer Reference (UTR) on the back. This ensures the payment gets applied to your Self Assessment tax properly.

Then, just pop it in the mail to the address listed on your tax form or HMRC’s website.

The tricky part? Processing times can take several days, so if you’re close to the payment deadline, this method might not be the best choice.

We’ve had clients who ran into issues because they didn’t leave enough time for the cheque to reach HMRC and be processed.

While mailing a cheque works well for those who don’t want to deal with online payments, if you’re in a rush, it’s better to go with something quicker like Direct Debit or paying online.

That said, it’s a good fallback option if you’ve got the time and prefer a paper trail!

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8. Budget Payment Plan

A Budget Payment Plan is a great way to spread out your Self Assessment tax payments throughout the year, which can really help with managing cash flow.

Instead of paying your full assessment bill in one lump sum, you can make smaller monthly payments, giving you a bit more breathing room. We've seen this method work particularly well for our clients who are self-employed or have business income that fluctuates.

Setting it up is pretty simple—just apply through HMRC’s online services and choose how much you want to pay each month.

HMRC will calculate the amount based on your previous tax returns, so you’ll know exactly how much to pay each month. This means no big surprises come tax time, and you can plan ahead for your second payment or any payments on account.

A Budget Payment Plan is perfect for those who might struggle with a big lump sum, or for anyone who wants to break down their tax payments into manageable chunks. You can also explore how AI tax calculators for estimating Self Assessment obligations can help project your future monthly instalments before you set up a plan with HMRC.

If you're worried about having enough money to cover your tax bill when it comes due, this can be a real lifesaver!

9. Adjusting Payments on Account

Adjusting your payments on account is super useful if your income changes throughout the year. If you’re expecting to earn less, you can reduce your payments to avoid overpaying.

On the flip side, if you think your income will be higher, you can increase your payments to avoid a big tax bill later on.

To make changes, just head to HMRC’s online services and adjust your payments before the payment deadline. We find this is especially handy for self-employed people or anyone with fluctuating income, like freelancers or landlords.

If your income changes from year to year, adjusting your payments makes life a lot easier and helps you avoid interest charges for underpayment. Staying mindful of tax return deadlines for UK digital freelancers will ensure you submit your adjustments and filings well before statutory cutoffs.

It’s all about staying flexible and making sure your payments match your earnings!

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Final Thoughts

As you get ready to pay your Self Assessment tax, knowing your payment options can make all the difference in staying on top of your finances.

Whether it’s paying through online banking, setting up a Direct Debit, or even adjusting payments on account, the right choice can save you time and stress.

At Pie Tax, we’ve seen first hand how planning ahead and choosing the right payment method helps clients avoid last-minute chaos. If your situation changes or you’re not sure which method is best for you, don't hesitate to reach out.

We’re here to simplify the Self Assessment process and help you stay on track with your payments, so you can avoid late payment penalties and interest charges. Reviewing our checklist on avoiding tax return errors and compliance failures will also ensure your figures are completely accurate before submitting.

Whatever your situation, we’ll guide you every step of the way, ensuring your tax payments are smooth and stress-free. We're here to help!