HM Revenue and Customs (HMRC) has issued a warning to taxpayers about the upcoming July 31 deadline for the second Payments on Account instalment for the 2025 to 2026 tax year. The reminder was shared on Monday, June 29, 2026, urging taxpayers to prepare for the payment due by midnight on Friday, July 31, 2026.
What Are Payments on Account?
Payments on account are advance payments towards a taxpayer's next Self Assessment tax bill. According to HMRC, they help spread the cost of tax owed by splitting it into two instalments. Each payment equals half of the tax the customer owed in the previous year. These payments are due by January 31 and July 31 each year.
Exceptions to Payments on Account
Brits are required to make these two payments unless exceptions apply. Taxpayers do not need to make payments on account if the amount of tax owed last year was under £1,000, or if they paid over 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).
Filing and Payment Options
Payments on account can be made before a taxpayer has filed their Self Assessment tax return, HMRC explains. The deadline for submitting tax returns and paying any remaining tax owed for the 2025 to 2026 tax year is January 31, 2027. Filing early allows taxpayers to determine how much they owe sooner, aiding budgeting and financial planning.
Taxpayers can pay via the HMRC app, which is the quickest method, or through GOV.UK, by cheque, telephone banking, or other options. Monthly or weekly payment plans can also be set up. Any payments made through these plans count towards the next Self Assessment tax bill, preventing a sudden large sum.
HMRC directs people to search "Pay your Self Assessment tax bill" on GOV.UK to choose the best payment option for their circumstances.
Official Comment
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."
