Millions of UK households have just one month left to make a key tax payment, with HMRC warning that leaving it until the last minute could cause unnecessary stress. The tax authority is reminding Self Assessment customers that the second Payment on Account for the 2025/26 tax year must be made by July 31.
What are Payments on Account?
Payments on account are advance payments towards the following year's tax bill. They are usually required if your previous Self Assessment tax bill was more than £1,000 and you did not already pay at least 80% of the tax you owed through PAYE or other deductions. Each instalment is typically worth half of the previous year's tax bill.
Help and support available
HMRC says customers struggling to meet the bill can spread the cost by setting up weekly or monthly payment plans, with any instalments already paid counting towards the total due next month. The department is also encouraging taxpayers to use its app, revealing it is the quickest way to pay. More than 110,000 payments have been made through the HMRC app since April, while almost 2 million Self Assessment customers have used the app to pay their tax bills since it was launched in January 2022. The app also allows users to set payment reminders and track 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."
Who does not need to pay?
Not everyone has to make a payment on account. They are generally not required if your previous year's Self Assessment bill was less than £1,000, or if more than 80% of the tax you owed was collected through your tax code or deducted before you received the income. Tax experts also point out that anyone expecting to earn less this year than last can ask HMRC to reduce their payments on account, although reducing them too far could leave them facing interest charges if they underpay.
File early and upcoming changes
Although the July payment is approaching, taxpayers do not have to wait until January to file their next tax return. HMRC says people can submit their 2025/26 Self Assessment return now, allowing them to find out their final tax bill well before the January 31 2027 filing and payment deadline. Filing early also gives taxpayers more time to budget for any balancing payment that may still be due. In a further change, from mid-July around 300,000 people who pay the High Income Child Benefit Charge will see Child Benefit information automatically added to their online Self Assessment return, making it quicker and easier to complete accurately.
The reminder comes as major changes to the tax system continue to roll out, with sole traders and landlords earning more than £50,000 now required to comply with Making Tax Digital for Income Tax, submitting quarterly updates using compatible software. Their first quarterly submission deadline is August 7 2026.
Beware of fraudsters
HMRC is also urging taxpayers to watch out for fraudsters, warning that criminals frequently impersonate the department in emails, texts and phone calls in an attempt to steal money or personal information. Taxpayers are advised never to click on links in unexpected messages or share their Government Gateway login details.
