You know you’ll need to pay tax on your sole trader profits. But when does HMRC actually expect the money?
For many sole traders, the surprise isn’t how much tax they owe. It’s when they have to pay it.
Here’s how the deadlines work, wherever you live in the UK.
When do sole traders pay Income Tax?
The UK tax year runs from 6 April to 5 April the following year.
If you’re self-employed, you’ll usually report your income and expenses through Self Assessmentand pay any tax owed directly to HMRC.
The payment deadlines are the same across England, Scotland, Wales and Northern Ireland.
For the tax year ending 5 April 2026:
- 31 January 2027: Online Self Assessment filing and payment deadline.
- 31 July 2027: Second payment on account, if required.
You may also need to make an advance payment on 31 January.
Does it matter where in the UK you live?
Yes, because the amount of Income Tax you pay can differ.
England, Wales and Northern Ireland use the same Income Tax rates and bands for 2025/26.
Scotland has different Income Tax bands and rates for earnings from self-employment. Depending on your profits, your tax bill could be higher or lower.
However, the Self Assessment deadlines and National Insurance rules are the same throughout the UK.
What happens on 31 January?
By 31 January, you normally need to:
- Submit your online Self Assessment tax return.
- Pay any outstanding Income Tax and National Insurance for the previous tax year.
- Make your first payment on account towards the current tax year, if applicable.
That third point is where things can get expensive.
What are payments on account?
Payments on account are advance payments towards your next tax bill.
HMRC generally requires them when your previous year’s Self Assessment bill was £1,000 or more, unless over 80% of the relevant tax was collected outside Self Assessment.
Each payment is normally 50% of the previous year’s Income Tax and Class 4 National Insurance liability.
You pay in two instalments:
- 31 January: First payment on account.
- 31 July: Second payment on account.
These aren’t extra taxes. They’re advance payments towards the following year’s bill.
Why can your first tax bill be so big?
Imagine you’re a sole trader with an annual turnover of £45,000 and a taxable profit of £35,000.
Assuming you have no other income, standard allowances and no previous payments on account, your estimated 2025/26 bill could look like this:
| England, Wales & NI | Scotland | |
| Income Tax | £4,486 | £4,550 |
| Class 4 National Insurance | £1,346 | £1,346 |
| Total tax bill | £5,832 | £5,896 |
| First payment on account | £2,916 | £2,948 |
| Total due 31 January 2027 | £8,748 | £8,844 |
| Second payment, 31 July 2027 | £2,916 | £2,948 |
Illustrative figures based on 2025/26 rates, rounded to the nearest pound. Your actual bill will depend on your circumstances.
That’s nearly £9,000 due in January, even though the tax for the completed year is considerably less.
How can you avoid a surprise?
The easiest way to prepare is to know what your business is earning throughout the year.
Keep your bookkeeping up to date, put money aside regularly for tax and understand whether payments on account will apply.
If your profits are falling, you may be able to ask HMRC to reduce your payments on account. But reducing them too far can result in interest.
Let Brease take care of the numbers
With Brease, your bookkeeping is kept up to date, your tax position is easier to understand and you have a real person to talk to when something doesn’t make sense.
We help you stay organised, prepare for your tax obligations and know what’s coming.
Less worrying about deadlines. More time running your business.
Looking for more simple business advice?
This guide is part of the Brease Guides collection, created to help sole traders understand bookkeeping, tax and Making Tax Digital without the jargon.
