HMRC has issued a warning to UK households regarding a crucial July deadline. The tax office reminds millions of people across the country who file a self-assessment tax return each year to prepare for the second payments on account deadline on July 31. Those required to file include state pensioners who owe tax on their income, landlords with rental income, and individuals who need to repay Child Benefit due to exceeding the £60,000 income threshold.
What Are Payments on Account?
Payments on account are advance payments towards a customer's next Self Assessment tax bill. They help spread the cost of the tax owed by making payments in two instalments, each half of the previous year's tax liability. These payments are due by midnight on January 31 and July 31.
HMRC allows taxpayers to spread the cost of their tax bill through the year by splitting it into multiple payments. In July, the second Payments on Account deadline will hit households on July 31.
HMRC Statement and Support Options
HMRC said on Monday: “With one month to go, HM Revenue and Customs (HMRC) is reminding millions of Self Assessment taxpayers to prepare for the 2025 to 2026 tax year second payments on account 31 July deadline. 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. The app makes it easy for people to pay towards their tax bill, set payment reminders, and track and view their payment history.
Chief Customer Officer's Remarks
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.”
HMRC encourages all taxpayers to act promptly to avoid penalties and ensure their tax obligations are met on time.
