Payments on Account Deadlines for Landlords: 2026/27 Dates and Cash-Flow Plan
Last updated 24 June 2026 · 9 min read · By the LandlordTaxAi Editorial Team
The short answer
For landlords, payments on account are advance Self Assessment payments towards the next tax bill, normally paid in 2 instalments. For the 2026/27 tax year, the first payment on account is due on 31 January 2027, the second on 31 July 2027, and any balancing payment is due on 31 January 2028.
Payments on account catch landlords out because they are payment deadlines, not extra filing deadlines. You can file your 2025/26 return on time and still get a nasty cash-flow shock on 31 January 2027 if you have not budgeted for the first 2026/27 payment on account.
Use the free calculator above to estimate your landlord income tax position, then compare the result with the dates below. For the wider annual calendar, see our landlord tax deadlines 2026/27 guide; for the ordinary return filing dates, use Self Assessment deadlines for landlords.
The key point is simple: the tax return deadline tells HMRC your figures, but the payment-on-account deadlines decide when cash leaves your bank account.
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Payments on Account Estimate Calculator
Estimate your landlord income tax bill so you can plan the 31 January and 31 July payments on account.
Result
- Personal allowance
- £12,570
- Taxable income
- £32,430
- Income Tax due
- £6,486
- Take-home (income − tax)
- £38,514
Uses 2026/27 UK income tax settings; payments on account are usually based on your previous Self Assessment bill and may not apply if the bill is under £1,000 or mostly paid outside Self Assessment.
Payments on account deadlines for landlords in 2026/27
Payments on account are advance payments towards your next Self Assessment tax bill. HMRC normally collects them in 2 instalments, and each one is usually half of the tax owed for the previous year.
For landlords planning the 2026/27 tax year, the important dates are below. These are separate from the filing deadlines for the tax return.
| Deadline | What it usually covers | Landlord cash-flow impact |
|---|---|---|
| 31 January 2027 | 2025/26 balancing payment plus first 2026/27 payment on account | Often the largest single payment |
| 31 July 2027 | Second 2026/27 payment on account | Mid-year cash payment |
| 31 January 2028 | 2026/27 balancing payment, if the final bill is higher | Top-up after final figures |
The biggest pitfall is thinking 31 January 2027 is only about the 2025/26 return. It can also include your first advance payment for 2026/27.
Filing deadlines are not the same as tax payment deadlines
For the 2025/26 Self Assessment return, HMRC’s current deadlines are: tell HMRC you need a return by 5 October 2026 where relevant, submit a paper return by 11:59pm on 31 October 2026, submit an online return by 11:59pm on 31 January 2027, and pay the tax due by 11:59pm on 31 January 2027.
That final payment date is where landlords get caught. If payments on account apply, the 31 January payment is not just last year’s tax. It can also include the first advance instalment for the new tax year.
If you are also entering Making Tax Digital for Income Tax, remember that quarterly updates are record and reporting obligations, not the same thing as settling your Self Assessment bill. Our MTD quarterly deadline calendar covers those dates separately.
| Date | Deadline type | What landlords should do |
|---|---|---|
| 5 October 2026 | Registration | Tell HMRC if you need a return |
| 31 October 2026 | Paper filing | Paper return received by HMRC |
| 31 January 2027 | Online filing | Online return submitted |
| 31 January 2027 | Tax payment | Pay balancing tax and first payment on account |
| 31 July 2027 | Tax payment | Pay second payment on account |
Filing early does not make the tax due earlier. It gives you more time to see the amount and plan for 31 January and 31 July.
When landlords do and do not have to make payments on account
Payments on account are not required if the relevant previous-year Self Assessment tax was less than £1,000. They are also not required if more than 80% of the previous year’s tax was paid outside Self Assessment, for example through PAYE or tax deducted at source.
HMRC’s manual says each payment on account cannot exceed 50% of the relevant amount for the preceding year. Broadly, that relevant amount is the assessed income tax after deducting income tax already deducted at source.
For landlords with employment income, this matters. A PAYE salary may already cover much of the overall tax, but rental profit taxed through Self Assessment can still create payments on account if the unpaid Self Assessment element crosses the threshold.
- No payments on account if the relevant previous-year Self Assessment tax is less than £1,000.
- No payments on account if more than 80% of the previous year’s tax was paid outside Self Assessment.
- Each instalment is usually 50% of the relevant previous-year amount.
- The calculation is based on the previous year, so it may not reflect a current-year rent drop or higher costs.
If your rental profit is small and most tax is collected through PAYE, you may have a Self Assessment bill without payments on account.
What is included in payments on account, and what is not
For landlords, payments on account are mainly about Income Tax on rental profit. They are not a separate property tax and they are not calculated property by property.
Capital gains tax, voluntary Class 2 National Insurance contributions and student loan repayments are ignored when checking whether the £1,000 payments-on-account threshold is met. HMRC’s manual also says capital gains tax and student loan repayments are included only in the balancing payment, not in the advance payments on account.
This is especially important if you sold a rental property. A capital gains tax amount can make the 31 January balancing payment bigger, but it should not automatically inflate the following payments on account in the same way rental income tax can. For property sale reporting dates, see our property sale CGT deadline calendar.
| Item | Normally affects payments on account? |
|---|---|
| Income Tax on rental profit | Yes |
| Tax deducted at source | Reduces the relevant amount |
| Capital gains tax | No, balancing payment only |
| Student loan repayments | No, balancing payment only |
| Voluntary Class 2 NIC | Ignored for the £1,000 threshold |
Do not assume every amount on your Self Assessment statement drives next year’s payments on account. CGT and student loan repayments are treated differently.
Can a landlord reduce payments on account?
Yes, but only where the current-year tax is genuinely expected to be lower. Landlords can apply to reduce payments on account using HMRC’s online service or form SA303 if business profits or other income go down, tax deducted at source goes up, or allowances and reliefs increase.
Common landlord reasons include a long void period, a property sale, a large fall in rent, higher allowable expenses, or moving from rental profit into a rental loss position. The risk is that reducing too far can leave tax still due later, potentially with interest.
Before reducing a payment, update your rental figures and run a realistic estimate. If the issue is expense treatment, our allowable expenses for landlords 2026 guide can help you avoid underestimating or overstating the current-year profit.
- Use HMRC’s online service or form SA303.
- Reduce only if the current-year liability is expected to be lower.
- Keep evidence for the reason, such as voids, rent reductions or updated expense records.
- Review again before 31 July 2027 if circumstances change.
Reducing payments on account is not a cash-flow trick. If the final 2026/27 bill is higher than your reduced payments, you still have to pay the difference.
How landlords should budget for the 31 January and 31 July payments
The practical answer is to treat payments on account as part of your rental profit calculation, not as a surprise after the return is filed. Put aside money as rent arrives, especially if your rental income is not taxed through PAYE during the year.
Use the free calculator above as an estimate, then compare it with the payments HMRC shows on your Self Assessment statement. If you use LandlordTaxAi, keep your rental records up to date during the year so the eventual 31 January and 31 July cash payments are easier to forecast.
- Estimate the tax on rental profit before 31 January.
- Remember the first 31 January bill can include both last year’s balancing payment and next year’s first payment on account.
- Check whether the £1,000 or 80% exceptions apply.
- Do not include a one-off property CGT bill when estimating ongoing rental payments on account.
- Review the position again before 31 July.
A landlord who files early in the year gets months, not days, to plan the 31 January payment.
Stop payments on account becoming a January shock
LandlordTaxAi keeps your rental records and tax estimates up to date so you can plan the 31 January and 31 July payments before HMRC’s bill lands.
See how it worksStep by step
- 1
Estimate your 2025/26 Self Assessment tax
Use your rental profit, employment tax deducted through PAYE and other Self Assessment income to estimate the amount due by 31 January 2027.
- 2
Check whether payments on account apply
If the relevant previous-year Self Assessment tax is less than £1,000, or more than 80% was paid outside Self Assessment, payments on account are not normally required.
- 3
Add the first payment on account to the 31 January amount
If payments on account apply, add a first instalment that is usually half of the relevant previous-year tax.
- 4
Set aside the second instalment for 31 July
Budget for the second payment on account by 31 July 2027, rather than treating the January payment as the end of the tax year’s cash cost.
- 5
Review whether a reduction claim is justified
If your current-year rental profit or other income has fallen, consider whether an HMRC online claim or form SA303 is appropriate.
- 6
Reconcile the final bill on 31 January 2028
When the 2026/27 figures are final, compare the actual tax with the two payments on account and pay any balancing amount by 31 January 2028.
A worked example
A landlord files their 2025/26 Self Assessment return and has a £4,000 income tax bill through Self Assessment. They did not make payments on account last year, and no exception applies.
| 2025/26 balancing payment due 31 January 2027 | £4,000 |
| First 2026/27 payment on account due 31 January 2027 | £2,000 |
| Total due by 31 January 2027 | £6,000 |
| Second 2026/27 payment on account due 31 July 2027 | £2,000 |
| Total cash paid towards 2025/26 and 2026/27 before final 2026/27 balancing | £8,000 |
This is why first-time payments on account feel so painful: the 31 January payment can be 150% of the previous year’s Self Assessment tax bill.
Frequently asked questions
What are the payments on account deadlines for landlords in 2026/27?
For the 2026/27 tax year, the first payment on account is due on 31 January 2027, the second is due on 31 July 2027, and any balancing payment is due on 31 January 2028.
Is the 31 January deadline a filing deadline or a payment deadline?
It is both. For the 2025/26 return, the online filing deadline is 11:59pm on 31 January 2027, and the tax payment deadline is also 11:59pm on 31 January 2027. If payments on account apply, that payment can include the first advance instalment for 2026/27.
Do all landlords have to make payments on account?
No. Payments on account are not normally required if the relevant previous-year Self Assessment tax was less than £1,000, or if more than 80% of the previous year’s tax was paid outside Self Assessment, such as through PAYE.
How much is each payment on account?
Each payment is usually half of the tax owed for the previous year. HMRC’s manual says each payment on account cannot exceed 50% of the relevant amount for the preceding year.
Does capital gains tax from selling a rental property increase payments on account?
Capital gains tax is included in the balancing payment, but it is not normally used to calculate payments on account. This matters if you have a one-off property sale in the same Self Assessment year.
Can I reduce my payments on account if my rental profit has fallen?
Yes, you can apply to reduce payments on account using HMRC’s online service or form SA303 if your current-year tax is expected to be lower. Be careful: if you reduce too far, you will still owe the difference when the final bill is calculated.
Written and reviewed by the LandlordTaxAi Editorial Team. Our guides are reviewed against current HMRC guidance and updated when the rules change. Operated by LandlordTaxAi, United Kingdom. Follow us on LinkedIn.
Last reviewed: 24 June 2026 · Researched against primary UK sources for the 2026/27 tax year: https://www.gov.uk/understand-self-assessment-bill/payments-on-account; https://www.gov.uk/pay-self-assessment-tax-bill; https://www.gov.uk/self-assessment-tax-returns/deadlines; https://www.gov.uk/hmrc-internal-manuals/self-assessment-legal-framework/salf303; https://www.gov.uk/hmrc-internal-manuals/self-assessment-legal-framework/salf302; https://www.gov.uk/guidance/claim-to-reduce-payments-on-account. This article is informational only and does not constitute tax advice. Check the latest details on GOV.UK or with a qualified accountant.