HM Revenue and Customs (HMRC) has confirmed a midnight tax payment deadline for millions of UK households this Friday, July 31. Self Assessment taxpayers must file their second payments on account for the 2025 to 2026 tax year by this time.
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. Each payment is half of the total tax owed from the previous tax year, with instalments due by midnight on January 31 and July 31.
Taxpayers are required to make these payments unless the amount of tax owed last year was less than £1,000, or if they paid more than 80% of the tax owed outside Self Assessment (e.g., through their tax code or bank interest deductions). Payments can be made before filing the full Self Assessment tax return, which is due by January 31, 2027.
HMRC Reminder and Support
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.”
Payments on account are calculated based on estimated earnings, typically half of the previous year’s tax bill. If earnings exceed estimates, additional tax may be due; if lower, taxpayers may claim a refund.
Reducing Payments and Avoiding Penalties
Taxpayers expecting a lower tax bill can ask HMRC to reduce their payments on account online or by post, providing an earnings estimate so HMRC can recalculate the instalments.
Andrew Bartlett, chief executive of Advice Direct Scotland, added: “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.”
