SA Options by Taxpayer Type - August 2026
| Taxpayer type | Why January is difficult | Best solution |
|---|---|---|
| Company director (salary + dividends) | Large dividend SA tax bill. Company needs its own cash. POA on top. | Personal property bridge - BTL or second home. Or HMRC TTP if approved. |
| Self-employed seasonal business | Peak revenue does not match January quiet period. | Bridge on business premises or HMRC TTP with credible cashflow evidence. |
| BTL landlord - large portfolio | Annual SA on net rental income. Rental arrives monthly; SA falls annually. | BTL property bridge - typically very low LTV, good rates achievable. |
| Freelancer - first year high income | 150% demand: actual tax + first POA at new higher income level. | Personal property bridge. Or reduce POA if current year income lower. |
| Investor - capital gains in year | SA reconciles 60-day CGT payment. Additional tax may be due. | Bridge on remaining portfolio. Or check whether 60-day CGT overpaid (refund due). |
Indicative rates - August 2026. Rates change daily. Actual rate depends on LTV, security, credit profile, loan size, and exit strategy. Contact our team for a live rate comparison for your specific case. All rates sourced from lender product sheets and publicly available market data.
What determines your rate
The payment on account - why January bills are larger than expected: If SA tax exceeds £1,000, HMRC requires a first payment on account (50% of prior year's tax) alongside the main payment on 31 January. In a year where income jumps significantly, January can require payment of 150% of the prior year's January bill. This is the single most common source of SA surprise - model it in advance with your accountant.
Reducing payments on account: If current year income will be significantly lower than last year, apply to HMRC to reduce the POA before the deadline. Log into SA online and use "Reduce payments on account." If reduced below the actual liability, interest applies on the shortfall. Get accountant advice before reducing.
HMRC SA payment helpline: Call 0300 200 3822 before the deadline. HMRC can offer a short extension or TTP. The 5% surcharge (at 30 days, 2 March for January deadline) is avoided if TTP is agreed before the surcharge date. Always call before 2 March - not after.
January peak demand for bridging: DBF arranges more SA bridging in January than any other month. Contact us before 20 January for the best timeline. Emergency bridges for January deadlines are possible in the final week - but earlier is always better.
Worked cost example
- Freelance architect - first year of high earnings.
- 2024/25 SA: £28,400. First POA: £14,200. Total 31 January: £42,600.
- Cash available: £18,000. Shortfall: £24,600.
- Owns commercial office (£380,000 freehold, no mortgage).
- Option A - HMRC TTP (call 20 January, propose 6-month plan):
- If approved: interest ~£700. No fees. Total: £700. Risk: approval not certain.
- Option B - Property bridge (£24,600 on office at 0.65%/month, 3 months):
- Cost: £485 interest + £369 fee + £1,800 legal = £2,654. Certain. 10-14 days.
- INTEREST BREAKDOWN - HMRC TTP: ~£700 interest for 6 months on £24,600. Zero fees.
- INTEREST BREAKDOWN - Bridge: £485 interest + £369 fee + £1,800 legal = £2,654.
- NET SAVING - TTP vs Bridge: TTP (£700) saves £1,954 vs bridge (£2,654) IF approved.
- HMRC cost if paid 35 days late (no TTP): 5% surcharge £1,230 + interest £181 = £1,411.
- NET SAVING - Bridge vs 35-day late: Bridge (£2,654) costs £1,243 more than 35-day late payment.
- NET SAVING - Bridge vs 90-day late: HMRC (£2,461) vs Bridge (£2,654). Bridge saves £207 at 90 days.
- BEST APPROACH on 20 January: Pursue TTP and bridge simultaneously. TTP if confirmed within 48hrs. Bridge as certain backup.
Rate context and outlook
HMRC SA payment helplines reach peak call volumes in the last two weeks of January - wait times exceed 45 minutes. Contacting DBF in December or early January (when the shortfall is already predictable) allows bridge to be arranged with time to spare. Proactive planning beats reactive scrambling every time.