The short answer
- US: if you expect to owe $1,000 or more for the year, pay estimated tax in four instalments. For 2026 the dates are April 15, June 15 and September 15, 2026, and January 15, 2027.
- US safe harbor: you generally avoid the underpayment penalty if you pay at least 90% of this year’s tax or 100% of last year’s (110% if last year’s AGI was over $150,000).
- UK: register for Self Assessment by 5 October after the tax year you started, file online by 31 January, and pay by the same date. Payments on account (31 January and 31 July) usually start after your first bill.
- UK Making Tax Digital: since April 2026, sole traders with qualifying income over £50,000 send quarterly updates. They’re reports, not payments: tax is still paid through Self Assessment.
- In both countries, the trick is the same: set aside a share of every payment the day it arrives, and put every deadline in a reminder.
This is general information, not tax advice. A CPA, enrolled agent or chartered accountant can look at your numbers.
Two systems, one problem
Freelance income arrives unevenly, but tax deadlines are fixed. The US and the UK solve this differently:
| United States | United Kingdom | |
|---|---|---|
| How tax is paid during the year | Four estimated payments you calculate | Two payments on account based on last year’s bill |
| When you report the full year | Annual return (Form 1040 with Schedule C and Schedule SE) | Self Assessment return by 31 January |
| Quarterly reporting | No separate report: the payment is the obligation | Quarterly updates under Making Tax Digital, if in scope |
| Main penalty risk | Paying too little, too late in the year | Filing late, paying late |
How tax is paid during the year
United StatesFour estimated payments you calculate
United KingdomTwo payments on account based on last year’s bill
When you report the full year
United StatesAnnual return (Form 1040 with Schedule C and Schedule SE)
United KingdomSelf Assessment return by 31 January
Quarterly reporting
United StatesNo separate report: the payment is the obligation
United KingdomQuarterly updates under Making Tax Digital, if in scope
Main penalty risk
United StatesPaying too little, too late in the year
United KingdomFiling late, paying late
If you’re just starting out, our guide to going freelance covers the runway you need and the self-employment tax rates. This page is about the reporting calendar.
United States: estimated tax, step by step
The IRS expects individuals, including sole proprietors, to pay estimated tax if they expect to owe $1,000 or more when they file. Estimated tax covers both income tax and self-employment tax. You use Form 1040-ES to work it out.
The year is split into four payment periods. For 2026:
| Payment | Due date |
|---|---|
| 1st | April 15, 2026 |
| 2nd | June 15, 2026 |
| 3rd | September 15, 2026 |
| 4th | January 15, 2027 |
1st
Due dateApril 15, 2026
2nd
Due dateJune 15, 2026
3rd
Due dateSeptember 15, 2026
4th
Due dateJanuary 15, 2027
You can skip the January 15, 2027 payment if you file your 2026 return by February 1, 2027 and pay the full balance with it.
How much to pay: the safe harbors. You generally avoid the underpayment penalty if you owe less than $1,000 after withholding and credits, or if you paid at least the smaller of:
- 90% of the tax on this year’s return, or
- 100% of the tax on last year’s return, or 110% if last year’s adjusted gross income was over $150,000 ($75,000 if married filing separately).
The prior-year rule is the easiest to plan around, because it’s a number you already know. Example: Maya, a freelance illustrator in Denver, had a 2025 total tax of $9,600 and AGI of $95,000. If she pays $2,400 on each of the four dates, she’s covered for penalty purposes even if 2026 turns out to be a much better year. She’ll pay any balance with her return. If her 2025 AGI had been over $150,000, she’d need 110%: $10,560, or $2,640 a quarter.
Uneven income? If most of your income lands late in the year, the annualized income installment method on Form 2210 can reduce or remove the penalty, because it matches payments to when you actually earned the money.
How to pay: IRS Direct Pay from a bank account, EFTPS, your IRS Online Account, the IRS2Go app, or by mail with the Form 1040-ES voucher.
United Kingdom: Self Assessment and payments on account
UK freelancers report income once a year through Self Assessment. The deadlines for the 2025 to 2026 tax year:
| What | Deadline |
|---|---|
| Tell HMRC you need to file (new to Self Assessment) | 5 October 2026 |
| Paper return | 31 October 2026 |
| Online return | 31 January 2027 |
| Pay the tax owed | 31 January 2027 |
| Second payment on account (if you make them) | 31 July 2027 |
Tell HMRC you need to file (new to Self Assessment)
Deadline5 October 2026
Paper return
Deadline31 October 2026
Online return
Deadline31 January 2027
Pay the tax owed
Deadline31 January 2027
Second payment on account (if you make them)
Deadline31 July 2027
Payments on account are advance payments towards next year’s bill, including Class 4 National Insurance. Each one is half of last year’s bill, due on 31 January and 31 July. You don’t have to make them if last year’s bill was under £1,000, or if more than 80% of your tax was already collected at source (through PAYE, for example).
This is what makes the first year painful. Example: Chidi, a self-employed electrician in Manchester, started in 2025 to 2026 and owes £4,000 for that year. He made no payments on account, because he had no previous bill.
| Date | Payment | Amount |
|---|---|---|
| 31 January 2027 | Balance for 2025 to 2026 | £4,000 |
| 31 January 2027 | 1st payment on account for 2026 to 2027 | £2,000 |
| 31 July 2027 | 2nd payment on account for 2026 to 2027 | £2,000 |
31 January 2027
PaymentBalance for 2025 to 2026
Amount£4,000
31 January 2027
Payment1st payment on account for 2026 to 2027
Amount£2,000
31 July 2027
Payment2nd payment on account for 2026 to 2027
Amount£2,000
That’s £6,000 in January, 150% of a year’s bill. If you expect lower profits this year, you can ask to reduce your payments on account (form SA303, or through your online account).
Late filing costs an initial £100, then £10 a day after three months (up to £900), then 5% of the tax due or £300, whichever is greater, at six and again at twelve months. Paying late adds penalties of 5% of the unpaid tax at 30 days, six months and twelve months, plus interest.
Making Tax Digital: quarterly updates, not quarterly tax
Since 6 April 2026, sole traders and landlords whose qualifying income from self-employment and property was over £50,000 in the 2024 to 2025 tax year must use Making Tax Digital for Income Tax. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028.
If you’re in scope, you keep digital records in compatible software and send a quarterly summary of income and expenses:
| Standard period | Update due |
|---|---|
| 6 April to 5 July | 7 August |
| 6 April to 5 October | 7 November |
| 6 April to 5 January | 7 February |
| 6 April to 5 April | 7 May |
6 April to 5 July
Update due7 August
6 April to 5 October
Update due7 November
6 April to 5 January
Update due7 February
6 April to 5 April
Update due7 May
Two points to keep in mind. First, no tax is paid with these updates: payment still follows the Self Assessment dates above. Second, late updates earn penalty points, and four points bring a £200 penalty. HMRC won’t apply points for late quarterly updates during the 2026 to 2027 tax year, but you still need to send them all before you can submit your return.
What freelancers elsewhere do: France’s monthly declaration
In France, a micro-entrepreneur declares the turnover actually received every month or quarter and pays social charges with each declaration. The rules, dates and penalties are in our French guide to declaring your turnover as an auto-entrepreneur.
Setting money aside and keeping the dates
Whatever the country, the failure mode is the same: the money was spent before the tax date arrived. Two habits fix it.
- 1Pick a percentageStart from last year’s bill divided by last year’s income, or an adviser’s estimate.
- 2Move it on paydayEvery time a client pays, transfer that share to a separate tax pot.
- 3Put every date in a reminderA week before each payment, update or filing deadline.
- 4Check the pot before each dateIf it’s short, you know before the deadline, not after.
- 5Adjust once a yearAfter you file, reset the percentage to the real rate.
In Binome360 you do steps 2 and 3 in a sentence each.
Received $3,200 from Northline Press, put 25% in my tax pot
Ready: income of $3,200 on the business account, and $800 to move into the goal “Estimated tax”. Save it?
Remind me a week before each estimated tax date
Ready: reminders on April 8, June 8, September 8 and January 8, every year, at 9 am. Save them?
The 25% is Maya’s own estimate. The transfer and the payment to the IRS are hers to make.
Try Binome360 for freeBinome360 doesn’t calculate your tax, file returns or connect to the IRS, HMRC or your bank. It keeps the record of what came in and what you set aside, and reminds you of the dates you choose.
Frequently asked questions
Do freelancers have to pay taxes quarterly?
In the US, yes, if you expect to owe $1,000 or more for the year: four estimated payments. In the UK, no: you pay through Self Assessment, usually with two payments on account a year. Making Tax Digital adds quarterly reports, not quarterly payments.
What happens if I miss an estimated tax payment?
The IRS may charge an underpayment penalty, calculated like interest on the amount that was short, for the time it was short. Pay as soon as you can to limit it, and check whether a safe harbor or the annualized method applies.
When do I need to register for Self Assessment?
Tell HMRC by 5 October after the end of the tax year in which you started, for example by 5 October 2026 if you started trading between 6 April 2025 and 5 April 2026 and need to file.
Are Making Tax Digital quarterly updates tax payments?
No. They’re summaries of your income and expenses. Tax is still paid on the Self Assessment dates: 31 January and, if you make payments on account, 31 July.
In short
US freelancers pay four estimated instalments, and the prior-year safe harbor makes the amount predictable. UK freelancers file once a year by 31 January, with payments on account that make the first January heavy, and Making Tax Digital adds quarterly reports above £50,000. First step: find last year’s tax bill, divide it by the number of instalments you owe, and put each date in a reminder today.
Sources
- IRS, “Estimated taxes” (who must pay, safe harbors, payment methods, Form 2210): irs.gov.
- IRS, Form 1040-ES (2026), “Estimated Tax for Individuals” (due dates, 110% rule): irs.gov/pub/irs-pdf/f1040es.pdf.
- IRS, “Underpayment of estimated tax by individuals penalty”: irs.gov.
- GOV.UK, “Self Assessment tax returns: deadlines” and “penalties”: gov.uk/self-assessment-tax-returns.
- GOV.UK, “Understand your Self Assessment tax bill: payments on account”: gov.uk.
- GOV.UK, “Check if you’re eligible for Making Tax Digital for Income Tax” and “Send quarterly updates”, 2026: gov.uk.
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