When Do You Have to Pay for Taxes?

PHS Team

22 Apr, 2025

If you're employed, self-employed, or earning extra on the side, knowing exactly when to pay your taxes is key to staying out of trouble with HMRC. The UK tax system has clear deadlines, but they can vary depending on how you earn your money. 

This blog breaks it all down in simple terms, so you’ll know what to pay, when to pay it, and how to stay organised all year round. Whether you're filing a Self Assessment or just checking your PAYE.

Why Tax Payment Deadlines Matter

Your 2023/24 tax bill was due on 31 January 2025. If you haven’t paid it yet, HMRC will charge you interest until it’s paid. If it’s still unpaid by midnight on 2 March 2025, you’ll also get a 5% late payment penalty on top of the interest.

Knowing your tax deadlines helps you:

• Avoid paying penalties
• Stay organised
• Plan your money better

Tax Deadlines for the 2025/2026 Financial Year

The financial year 2025/2026 encompasses the tax period from 6 April 2025 to 5 April 2026. Here are the important dates you need to be aware of:

Knowing these tax year date help you stay ahead. Always check when does tax year end and when does the financial year end to stay on track.

Taxes for Employed People (PAYE System)

If you are employed, your tax is usually taken from your wages before you get paid. This system is called PAYE, which stands for Pay As You Earn.

How PAYE Works:

• Your employer works out how much tax and National Insurance you owe.
• They take it out of your salary each payday.
• Then they send that money to HMRC (the UK tax office) on your behalf.

So, you normally don’t have to do anything to pay your tax unless something goes wrong.

When You Might Need to Take Action:

You may need to contact HMRC or file a tax return if:

• You paid too much or too little tax.
• You changed jobs during the tax year.
• You want to claim tax reliefs, like for work expenses or travel costs.
• You’re due a tax refund.

Taxes for the Self-Employed and Sole Traders

If you work for yourself, like a sole trader or freelancer, you need to:

• Register for Self Assessment
• Send a tax return each year
• Pay your tax bill by the deadlines

When to Register:

You must register for Self Assessment by 5 October after the end of the tax year in which you started trading. It is also very important to know the tax year date.

When does the tax year start and end?

The tax year date runs from 6 April to 5 April the following year.

For example:

• 2025/26 tax year: 6 April 2025 to 5 April 2026

Key Payment Deadlines:

The following are the deadlines and what to pay:

Example:
If your last tax bill was £2,000:

• You pay £1,000 on 31 January
• Then £1,000 again on 31 July

If You’re a Company Director or Have Untaxed Income

Company directors usually need to file a Self Assessment tax return, even if they take most income through PAYE.

You also need to file a return if you have income that hasn’t had tax deducted. Common examples include:

• Rental income (from letting out property)
• Dividends from company shares
• Cryptocurrency gains
• Side hustles or freelance work

Key Deadlines:

Same as self-employed people:

• 31 January – Pay tax for the last tax year + 1st payment on account.
• 31 July – 2nd payment on account

Remember to check when does the tax year start and end. This helps you understand what income you need to report. The tax year ends on 5 April, so plan accordingly.

HMRC’s Role in Telling You What You Owe

HMRC helps you figure out your tax if:

• You’re employed (via PAYE)
• You submit a Self Assessment return

How You Find Out What You Owe:

• Use your Personal Tax Account online at GOV.UK
• Check your tax calculation or notice to pay
• Look out for reminders sent by post or email

What If You Miss the Deadline?

Missing the tax deadline can cost you money.

Penalties:

• £100 fine right away (if you miss the 31 January deadline),
• More charges if late over 3, 6, or 12 months.
• Extra interest is added daily if you don’t pay.

How to avoid:

• Set reminders for each tax year date.
• File and pay early.
• Use a tax accountant if unsure.

Note: Knowing when does the financial year end helps with planning. The financial year ends on 31 March, but the end of tax year is 5 April.

If you're unsure about when taxes are due, PHS Accountants are here to help. We specialise in guiding individuals and businesses through the UK tax system, ensuring you meet all tax deadlines, including the last day taxes are due, and avoid costly penalties. 

Whether you're self-employed, are a company director, or just need help with your tax return, our expert team is ready to assist. Contact us by phone at 0208 8611685 or by email at info@phs-uk.co.ukn. We’ll help you understand your payment of PAYE deadline, the tax year date and ensure you’re aware of the end of tax year requirements.