Thousands of Self Assessment taxpayers must make a crucial payment to HM Revenue and Customs (HMRC) by next Thursday, July 31, or risk incurring interest charges on any outstanding amount. The deadline applies to individuals who make payments on account, primarily affecting self-employed workers and others required to pay tax through Self Assessment.
Who Is Affected by the July 31 Deadline?
People who make payments on account through Self Assessment must submit their second payment for the 2025-26 tax year by July 31. Payments on account are advance contributions toward an individual's next Self Assessment tax bill. They are typically required when a person's previous tax bill exceeded £1,000 and less than 80% of the tax owed was collected at source via PAYE or other deductions.
The system is designed to spread the cost of a tax bill across the year. The first payment is normally due by January 31, and the second by July 31.
Consequences of Missing the Payment Deadline
Anyone who misses the July 31 deadline could see the amount they owe increase. HMRC currently charges late payment interest of 7.75% on outstanding balances until they are paid in full.
Claire Trott, Head of Advice at St. James's Place, urged taxpayers to act promptly. She said: "Time is running out for those required to make their second Self-Assessment payment. Anyone affected should check their online account now, rather than risk discovering an unexpected, and potentially costly, bill at the last minute."
Advice for New Self-Employed Individuals
Ms Trott noted that the July deadline may be less familiar to people who have only recently become self-employed or submitted their first Self Assessment tax return. She said: "Those who regularly complete a Self-Assessment return may already have July 31 marked in their calendars, but the deadline can be less familiar to people who have only recently become self-employed or submitted their first return. Given the potential cost of delay, it's essential individuals understand what is due so that they allow themselves enough time to resolve any queries and make sure the payment reaches HMRC before the deadline."
What to Do If You Cannot Afford the Payment
Ms Trott also urged anyone worried about paying the bill not to ignore it. She said: "Anyone concerned that they cannot afford the payment should contact HMRC at the earliest opportunity. Ignoring the bill will not make it disappear and could allow interest and potential penalties to build, whereas raising the issue early may provide an opportunity to discuss the support or payment options available."
How to Check and Manage Your Payments
Taxpayers can check whether they have a payment due by signing in to their HMRC online account. Those who expect their tax bill to be lower than the previous year may be able to apply to reduce their payments on account if appropriate. However, reducing payments too far could result in interest being charged if too little tax is ultimately paid.
Ms Trott advised that the deadline should also encourage people to prepare for future tax bills by regularly setting money aside, using HMRC's Budget Payment Plan, or seeking financial advice to help avoid unexpected tax costs.
