Funding your January 2027 tax bill

January may seem some distance away but now is a good time to consider your next self-assessment payment.

The 31 January deadline can involve more than simply paying the balance of tax for the previous year. Some taxpayers will also need to make the first payment on account towards the following year's liability.

This can result in a substantial cash requirement immediately after Christmas.

If your tax return for 2025-26 (which quantifies your January 27 tax payment) has not yet been prepared, consider doing it earlier this year. Filing a return before January does not normally mean that the tax has to be paid earlier, but knowing the amount payable several months in advance provides more time to plan.

Where income has increased significantly, it may also be sensible to put additional funds aside.

Do not forget income outside your main business or employment. Savings interest, dividends, property income and capital gains can all affect the final liability.

Tax liabilities are much easier to manage when they are anticipated. If you have not yet provided the information needed to prepare your tax return, September is an excellent time to start gathering it.