Quick answer
No. MTD for Income Tax changes how often you report, not when you pay. You still pay on 31 January and 31 July. If your last tax bill was over £1,000 and less than 80% was collected at source, you make two payments on account, each half of the previous year’s bill.
Payment dates
Date | What you pay |
|---|---|
31 January | Any balance for the previous tax year, plus your first payment on account for the current year |
31 July | Your second payment on account for the current year |
Payments on account
Each payment on account is half of your previous year’s tax bill. You make them if that bill was more than £1,000, unless more than 80% of your tax was already taken at source, for example through PAYE.
Where MTD helps
Your in-year tax estimate shows whether this year’s tax is likely to be much lower than last year’s. If it is, you can ask HMRC to reduce your payments on account.
Example
If your 2025/26 bill was £8,000, you’d pay £4,000 on 31 January 2027 and £4,000 on 31 July 2027 towards 2026/27, then any balance on 31 January 2028.