HM Revenue and Customs (HMRC) has confirmed a looming deadline for July tax payments for millions of UK households. Self Assessment taxpayers must file their second payments on account for the 2025-2026 tax year by midnight on Friday, July 31, 2026.
What Are Payments on Account?
Payments on account are advance payments towards a customer’s next Self Assessment tax bill, designed to spread the cost of tax owed across two instalments. Each payment equals half of the tax the customer owed in the 2025-2026 tax year. These payments are due by midnight on January 31 and July 31 each year.
Taxpayers can pay these instalments before filing their Self Assessment tax return, which is due on January 31, 2027. Any remaining tax owed for the 2025-2026 tax year must be paid by that date.
HMRC Encourages Early Filing
HMRC says filing early helps customers know how much tax they owe sooner, and the two payment deadlines allow the cost to be spread out for better manageability. 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.”
How Payments on Account Are Calculated
Payments on account are based on estimated earnings, usually half of the tax owed the previous year. If you earn more than estimated, you may still owe additional tax. If you earn less, you may be eligible for a tax refund. Payments can be made via GOV.UK or the HMRC app.
Taxpayers must make these two payments unless the amount of tax owed last year was less than £1,000, or they paid more than 80% of the tax owed outside of Self Assessment (e.g., through their tax code or bank interest deductions).
Options to Reduce Payments
Taxpayers expecting a lower tax bill than last year can ask HMRC to reduce their payments on account online or by post. This requires providing the expected earnings so HMRC can recalculate the payments.
Andrew Bartlett, chief executive of Advice Direct Scotland, warned: “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.”
