HMRC has confirmed there is just one month to go until the second Payments on Account deadline on 31 July. The Labour Party government's tax arm is reminding millions of Self Assessment taxpayers to prepare for the 2025 to 2026 tax year second payments on account 31 July deadline.
Payment Options and Support
Customers can set up monthly or weekly payment plans and any payments already made via these plans will count towards their next Self Assessment tax bill. Payments can be done via the HMRC app, with nearly 2 million Self Assessment taxpayers doing so since its introduction in January 2022. It makes it easy for people to pay towards their tax bill, set payment reminders and track and view 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."
Who Needs to Make Payments on Account?
Customers must make these two payments, unless either the amount of tax owed last year was less than £1,000 or last year they paid more than 80% of the tax owed outside of Self Assessment (for example through their tax code or because their bank had already deducted interest on their savings).
Payments on account are calculated based on your estimated earnings (usually the amount you earned the previous year). Each payment is usually half of the tax you owed the previous year.
Additional Tax and Balancing Payments
If you actually earn more than estimated, you may still have tax to pay on top of your payments on account. This is known as a ‘balancing payment’. You can estimate your Self Assessment tax bill before sending your tax return to give you an idea of what your bill is likely to be and allow you to budget and pay on time.
