Suppose you are employed, submit your online return by 11:59pm on 30 December 2026 and owe £2,400. Because this is less than £3,000, you can ask HMRC to collect it through your 2027/28 tax code if you meet the other PAYE conditions. A part payment cannot be used to get under the threshold.
01 / CHECK THE CONDITIONS
Could you pay through your tax code?
If you submit your ONLINE Self Assessment return by 11:59pm on 30 December 2026 (paper by 31 October), owe LESS than £3,000 (a part payment cannot be used to get under the threshold), and you already pay tax through PAYE (you're an employee or get a company pension), you can ask HMRC to collect what you owe through your 2027/28 tax code in monthly slices instead of paying a lump sum on 31 January 2027.
It will not apply if you don't have enough PAYE income for HMRC to collect it, or if you'd pay more than 50% of your PAYE income in tax.
02 / WHO IT SUITS
For employees with side income
This may suit someone with a job or company pension who also has side-hustle income, owes less than £3,000, and meets the PAYE conditions. It gives you the option to ask HMRC to collect what you owe in monthly slices through your 2027/28 tax code rather than paying it all on 31 January 2027.
This will not apply if you do not have enough PAYE income for HMRC to collect the amount, or if you would pay more than 50% of your PAYE income in tax.
03 / WHAT TO DO
Three steps before the deadline
- Check your return and amount due. The amount owed must be less than £3,000; a part payment cannot be used to get under the threshold.
- Submit your online return by 11:59pm on 30 December 2026. The paper return deadline is 31 October.
- Ask HMRC to collect what you owe through your 2027/28 tax code if you already pay tax through PAYE and meet the income conditions.
04 / GET YOUR RECORDS READY
Prepare your Self Assessment figures
Keep your income and expenses organised before you file.
Not tax advice. Not affiliated with, or endorsed by, HMRC.
SoleTraderSheetsUK is a trading name of EXTRACT API LTD.
Source: GOV.UK: Pay your Self Assessment tax bill through your tax code