When Do I Have to Pay Tax?
- Kyle Randall
- Jan 15
- 3 min read
Understanding When Tax Is Due in the UK
A very common question people ask is: “When do I actually have to pay tax?”
The answer depends on how you earn your income. Employees usually pay tax automatically, while self-employed people and those with untaxed income pay tax later through Self Assessment.
In this guide, we explain when tax is paid, how it’s collected, and what deadlines you need to know.
When Do Employees Pay Tax?
If you’re employed, tax is usually deducted automatically through PAYE.
This means:
Income Tax is taken before you’re paid
National Insurance is deducted at the same time
You don’t need to make separate payments to HMRC
Your employer handles this through payroll.
When Do Self-Employed People Pay Tax?
If you’re self-employed, tax is not deducted automatically.
Instead:
You report your income through a Self Assessment tax return
Tax is paid after the end of the tax year
Payments are made directly to HMRC
You can learn more about how this works on our Self Assessment services page.
What Is the Tax Year?
The UK tax year runs from 6 April to 5 April the following year.
For example:
Income earned between 6 April 2024 and 5 April 2025
Is reported in the 2024/25 tax year
Understanding the tax year helps avoid missing deadlines.
Key Tax Payment Deadlines
If you complete a Self Assessment tax return, the main deadlines are:
31 January – File your tax return and pay tax owed
31 January – First payment on account (if required)
31 July – Second payment on account (if required)
Missing these dates can lead to penalties and interest.
What Are Payments on Account?
Some people need to make payments on account, which are advance payments toward the next tax year’s bill.
These usually apply if:
Your tax bill is above a certain amount
You don’t pay most of your tax through PAYE
Payments on account can surprise first-time self-employed taxpayers.
Do You Pay Tax on All Income Immediately?
No. Many people:
Earn income during the year
Pay tax later once the tax year ends
This is common for self-employed people, landlords, and those with additional income.
What Happens If You Miss a Tax Payment?
If you miss a tax deadline, HMRC may charge:
Late payment penalties
Interest on unpaid tax
Acting early or speaking to HMRC can often reduce issues.
Official HMRC Guidance
You can find official guidance on tax deadlines and payments on the HMRC website:
How VIP Accounting Ltd Can Help
At VIP Accounting Ltd, we help individuals and business owners across Benfleet, Essex and the UK:
Understand when tax is due
File Self Assessment tax returns
Calculate and plan tax payments
Avoid penalties and interest
Stay fully compliant with HMRC
If you’re unsure when you need to pay tax, speak to our team via our contact page.
FAQs
Do employees need to worry about tax deadlines?
Usually no — tax is deducted automatically through PAYE.
Why does self-employed tax feel late?
Because tax is paid after the tax year ends, not as income is earned.
Can I spread tax payments?
In some cases, HMRC may agree to a payment plan.
Do I still need to file if I owe no tax?
Yes — if HMRC requires a return, it must be submitted.
Who Wrote This Article
Kyle Randall, Founder of VIP Accounting Ltd, provides clear, practical guidance to help individuals and business owners understand UK tax obligations and stay compliant with HMRC.
VIP Accounting Ltd is a strategic accounting and tax advisory firm based in Benfleet, Essex, supporting individuals and businesses across the UK with tax planning, Self Assessment, accounting, and HMRC compliance.
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