Self Assessment taxpayers must file second payments on account by midnight on July 31 (Image: Getty)
HM Revenue and Customs (HMRC) has confirmed a looming deadline for July tax payments for millions of UK households.
Self Assessment taxpayers have until midnight on Friday, July 31, to file their second payments on accounts for the 2025 to 2026 tax year, which is now just weeks away. Payments on account are payments towards a customer’s next Self Assessment tax bill and help spread the cost of the tax owed by making payments in two separate instalments. Each payment is half of the tax the customer owed in the 2025 to 2026 tax year and these payments are due by midnight on January 31 and July 31.
Payments on account instalments can be paid before a customer has filed their Self Assessment tax return, which is due on January 31, 2027, when any remaining tax owed for the 2025 to 2026 tax year must be paid.
HMRC says filing early means customers know how much tax they owe sooner and the two payments on account deadlines mean the cost of the tax due can be spread out to make it more manageable.
In a reminder to taxpayers of the July deadline, Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “We know managing a Self Assessment tax bill isn’t always straightforward and we are here to help.
“From paying instantly via the HMRC app to spreading the cost through a payment plan, there’s support available for every customer.
“Search ‘Pay your Self Assessment tax bill’ on GOV.UK to choose the payment option that works for you.”
Payments on account are calculated based on your estimated earnings and each payment is usually half of the tax you owed the previous year.
If you earn more than estimated, you may still have tax to pay on top of your payments on account, but if you earn less than estimated, you may be eligible to claim a tax refund.
The payments can be made via GOV.UK or the HMRC app and taxpayers must make these two payments, unless either:
last year they paid more than 80% of the tax owed outside of Self Assessment (such as through their tax code or because their bank had already deducted interest on their savings.
Taxpayers who expect their tax bill to be lower than last year can ask HMRC to reduce their payments on account either online or by post. To do this, you’ll need to include the amount you expect to make so HMRC can calculate your new payments on account.
Andrew Bartlett, chief executive of Advice Direct Scotland, added: “Paying a tax bill isn’t the first thing on most people’s minds during the height of the summer, which is why it is so easy to miss this particular HMRC deadline.
“However, if you forget about it, late payment fines will start to build up – so make sure you log in to your online account now and check if you need to act.
“If your situation has changed and you expect you will be liable to pay less tax than previously, make sure to ask for a reduction, which will keep the money in your pocket.”