The tax authority is reminding Brits of the deadline
Millions of Brits have just one month remaining to make a crucial tax payment, with HMRC cautioning that those who delay until the final moment could face avoidable stress.
The tax authority is alerting Self Assessment customers that the second Payment on Account for the 2025/26 tax year must be settled by July 31. Payments on account are advance contributions towards the subsequent year’s tax bill. They are typically required if your previous Self Assessment tax bill exceeded £1,000 and you didn’t already pay at least 80% of the tax owed through PAYE or other deductions.
Each instalment is generally worth half of the previous year’s tax bill. HMRC states that customers finding it difficult to meet the bill can spread the cost by arranging weekly or monthly payment plans, with any instalments already paid counting towards the sum due next month.
The department is also urging taxpayers to use its app, describing it as the fastest way to pay. More than 110,000 payments have been made via the HMRC app since April, while nearly two million Self Assessment customers have used the app to settle their tax bills since its launch in January 2022. The app also enables users to set payment reminders and monitor their payment history.
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 aren’t required by everyone. They’re typically unnecessary if your previous year’s Self Assessment bill was under £1,000, or if over 80% of the tax owed was collected through your tax code or deducted before you received the income.
Tax specialists also note that anyone anticipating lower earnings this year compared to last can request HMRC to reduce their payments on account, though reducing them excessively could result in interest charges if they underpay.
While the July payment is looming, taxpayers needn’t wait until January to submit their next tax return.
HMRC states that people can file their 2025/26 Self Assessment return now, enabling them to discover their final tax bill well ahead of the January 31, 2027, filing and payment deadline. Submitting early also provides taxpayers with additional time to budget for any balancing payment that might still be owed.
In an additional development, from mid-July approximately 300,000 people who pay the High Income Child Benefit Charge will have Child Benefit information automatically included in their online Self Assessment return, streamlining the process and improving accuracy.
The reminder arrives as significant changes to the tax system continue to be implemented, with sole traders and landlords earning above £50,000 now obliged to adhere to Making Tax Digital for Income Tax, submitting quarterly updates through compatible software. Their first quarterly submission deadline falls on August 7 2026.
HMRC is also urging taxpayers to remain vigilant against fraudsters, cautioning that criminals regularly impersonate the department through emails, texts and phone calls in attempts to steal money or personal information. Taxpayers are advised never to click on links in unsolicited messages or share their Government Gateway login credentials.
