If you cannot pay your Self Assessment bill in full, check HMRC’s payment-plan guidance and contact them about your circumstances. Instalments may be possible, but HMRC checks affordability and an arrangement is not automatic.[1]
For a self-employed tradesperson, the useful starting point is the actual bill and what your household and business can afford. This guide helps you prepare that conversation. It is general information, not personal tax, financial or legal advice.
Check which bill and deadline you are dealing with
Put the latest tax calculation beside your account statement. Note the tax year, amount outstanding and payment date. If something does not make sense, make that your first question for HMRC or your accountant rather than trying to build a repayment offer around an uncertain figure.
For the 2025 to 2026 tax year, the usual online return and Self Assessment payment deadline is 11:59pm on 31 January 2027. The usual paper-return deadline is 31 October 2026. There is also a 31 July payment deadline for people making payments on account.[4]
Keep filing and paying as separate tasks on your notes. Ask what you need to submit and what you need to pay, especially if you are already dealing with an earlier year’s bill. Do not assume the next January deadline covers everything showing on your account.
Separate money due in from money you have
Try making a short cash-flow note before the conversation. Record money already received separately from invoices you have sent. Beside an unpaid invoice, put the expected payment date and whether the customer has confirmed it. Leave room to explain uncertainty.
For your own preparation, write down the spending needed to keep the household and business running. Think about materials for agreed jobs, van costs and regular household bills. Mark estimates clearly instead of making the figures look more certain than they are.
HMRC’s guidance says monthly repayments take account of what remains after rent, food, utilities and fixed outgoings. The length of a plan depends on the debt and what you can afford.[3] Use an ordinary working month as a discussion point, not just your busiest week.
Gather the details before opening the service
HMRC says you will need the relevant tax reference, UK bank details with authority to set up a Direct Debit, and income and spending details to arrange a plan.[2] Find these through your own records and the official GOV.UK route; you do not need to share them with anyone helping you read this article.
If you cannot set up a plan online, HMRC asks about what you can repay, other taxes due, earnings, spending and savings or investments. It also says it expects savings or assets to reduce the debt where possible.[2] If that raises a question about something essential to your trade, write it down for an adviser rather than making a hurried decision.
Keep a page for questions. You might ask how an uneven income should be explained, what happens when another tax payment falls due, and what information is missing from your proposal. An accountant can help you check the figures; ask them to explain anything you do not understand.
Know which kind of payment arrangement you need
An overdue bill and saving towards the next one are different situations. HMRC’s guidance distinguishes monthly instalments for overdue tax from a Budget Payment Plan for weekly or monthly payments towards a future Self Assessment bill.[2] Check which route fits before completing an application.
A payment plan does not mean the debt disappears. HMRC’s guidance explains that interest affects the total paid and that paying the debt sooner reduces interest.[3] Ask what the proposed arrangement means for the full balance, not just the first monthly payment.
If you are considering borrowing to pay the bill, pause for advice about your circumstances before signing anything. This article cannot tell you whether a loan, use of savings or another option is suitable for you.
Leave the conversation with a written next step
Note what was agreed, any reference given and what you still need to supply. Keep the arrangement beside your cash-flow notes so you can review it when the next month’s work changes.
HMRC says to contact them if circumstances affect a plan, or if you cannot pay another tax bill.[3] Treat a cancelled job or delayed customer payment as a prompt to review the figures and ask questions, rather than assuming the original arrangement will still fit.
For today, find the latest bill and write down one question you need answered. Follow the official guidance below to choose the next contact. For more practical reading about working for yourself, visit the Trade Mind hub.
Sources
[1] If you cannot pay your tax bill on time: Overview – GOV.UK
[2] If you cannot pay your tax bill on time: Setting up a payment plan – GOV.UK
[3] If you cannot pay your tax bill on time: How much you'll pay – GOV.UK
