31 January Self Assessment Deadline
31 January is the single most important tax deadline for millions of UK taxpayers. Miss it and interest starts from 1 February, with a 5% surcharge added at 30 days.
What To Do If You Cannot Pay
If you are approaching 31 January without sufficient funds to pay your self-assessment demand - including any payment on account - this guide tells you exactly what to do, in order, right now.
31 January - Step-by-Step Action Plan
| Step | Action | Why | When |
|---|---|---|---|
| 1 | Check your SA demand: log into HMRC online and confirm the exact amount due, including any payment on account. | You need the exact figure to arrange finance or discuss TTP. | Today |
| 2 | Assess what you can pay: gather available cash, check all accounts, consider personal savings. | Partial payment reduces penalty base. Pay what you can. | Today |
| 3 | Call DBF (0204 6211776): get an indicative bridging quote for the shortfall. Free, no obligation, 15 minutes. | Confirms whether bridging is viable and at what cost - before you need it. | Today |
| 4 | Call HMRC Payment Support (0300 200 3835): explain your situation, request Time to Pay. | If approved, avoids all penalties. Works alongside exploring bridging. | Today or tomorrow |
| 5 | Decide: bridge, TTP, or combination. | Best outcome depends on whether TTP is approved, your property position, and cost comparison. | Within 48 hours |
| 6 | If bridging: instruct solicitor, accept formal offer, complete. | Bridge will pay HMRC - once completed, your SA is paid on time. | 7-14 days |
| 7 | If TTP: maintain payments. Set up direct debit. Keep HMRC informed of any changes. | A broken TTP is worse than no TTP. | Ongoing |
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 - what it is and why the January bill is larger than expected
Taxpayers who owe more than £1,000 in SA tax must also pay a first payment on account - 50% of last year's tax - alongside the main payment on 31 January. If your 2024/25 tax is £25,000, you also pay £12,500 first payment on account = £37,500 on 31 January. For growing businesses or high earners, this step-up is often larger than anticipated.
HMRC's payment support helpline
HMRC operates a dedicated payment support line for businesses and individuals in genuine difficulty: 0300 200 3835 (Monday to Friday, 8am-6pm). Call before the deadline if possible. HMRC's approach before the deadline is more sympathetic than after. Explain your situation clearly, provide the amount owed, and propose a specific repayment plan with dates.
January is DBF's busiest month for tax bridging
We arrange more SA bridging in January than any other month. Our experienced team has processed dozens of January SA bridges, including urgent completions in the final week of January. Contact us as early as possible - the last week of January is high demand. Contact us in December if you already know January will be challenging.
What if the deadline has already passed?
If 31 January has already passed: call HMRC immediately, pay as much as you can today, and arrange bridging to clear the remainder. Interest has started accruing from 1 February. The 5% surcharge at 30 days (2 March) is still ahead of you if you act within the first 29 days. Every day matters.
Worked cost example
Freelance graphic designer. 2024/25 SA demand: £18,500 + first POA £9,250. Total due 31 January: £27,750.
Cash available on 28 January: £8,000.
Shortfall: £19,750. Owns a BTL property worth £195,000 (no mortgage).
Strategy: Bridge £19,750 on BTL at 0.70%/month. Term: 3 months (until April contract receipts).
Cost: interest £419 + fee (1.5%) £296 + legal £1,500 = £2,215.
HMRC cost if £19,750 paid 35 days late: 5% surcharge £988 + interest £110 = £1,098.
Bridge (£2,215) costs £1,117 more than paying 35 days late - but provides payment certainty and avoids further escalation (6-month surcharge £988 more).
Best approach for this designer: call HMRC immediately, propose TTP on the £19,750 shortfall while paying £8,000 now. If TTP approved, cost is interest only (£280 for 3 months). If TTP refused, bridge immediately before 5% surcharge at day 30.
Rate context and outlook
The January 31 SA deadline is the largest single-day UK tax payment event - HMRC collects tens of billions in self-assessment on this date. Every year, hundreds of thousands of taxpayers face this deadline without sufficient liquid funds. The options - HMRC TTP, bridging, business loan - have never been more accessible. The key is acting early: before the deadline, not after.
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Frequently asked questions
What is the exact HMRC interest rate for late SA payment?
HMRC charges interest on unpaid SA tax at 7.75% per annum from 1 February (the day after the 31 January deadline). This rate has been in force since 9 January 2026 and is set at the Bank of England base rate (3.75%) plus 4%. The rate changes when the base rate changes.
Can I reduce my payment on account for 2025/26?
If you know your 2025/26 income will be significantly lower than 2024/25, you can apply to reduce the payments on account before the deadline. Log into HMRC Self Assessment online and use the "Reduce payments on account" function. Do this before 31 January - it cannot be applied retrospectively. If you reduce below the final liability, interest applies on the shortfall.
What if I file my SA return but cannot pay?
Filing the return without payment is important - it confirms the liability but avoids the late filing penalty (a separate £100 fine if the return itself is filed late, which is 31 January for online returns). Late payment interest and surcharges apply separately to the outstanding amount. File now, then deal with the payment immediately.
Will late SA payment affect my credit score?
HMRC does not directly report to credit reference agencies. However, if HMRC obtains a county court judgement (CCJ) against you for unpaid tax, the CCJ is registered with credit reference agencies and damages your credit score. This typically only happens after sustained non-payment and formal demand - not immediately after the January deadline. A bridging loan arranged promptly prevents any credit score impact.
I am a company director and my SA bill includes both personal tax and payment on account - which should I address first?
Legally, both are due on the same date (31 January) and both attract interest and penalties from 1 February. If you cannot pay both, prioritise the largest amount (to reduce the penalty base) or the component most likely to be covered by available cash. Consider whether the company can support a director's loan - carefully, for tax reasons - or whether a personal bridge is more appropriate.
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Not sure which route is right?
We will run the numbers on both HMRC and a bridge for your actual figures and tell you honestly which one costs less. No obligation, and no fee for the comparison.