HMRC Issues July Tax Deadline Alert for Millions of UK Self Assessment Customers
Millions of Britons have just one month remaining to make a crucial tax payment, with HMRC cautioning that those who delay until the final deadline could face avoidable anxiety. The tax authority is reminding Self Assessment customers that the second Payment on Account for the 2025/26 tax year must be settled by July 31.
Payments on account are advance instalments towards the following year's tax liability. They are typically required if your previous Self Assessment tax bill exceeded £1,000 and you did not already pay at least 80% of the tax owed through PAYE or other deductions. Each payment is usually equivalent to half of the previous year's tax bill.
Support Available for Struggling Taxpayers
HMRC says customers who are struggling to meet the bill can spread the cost by arranging weekly or monthly payment plans, with any instalments already paid counting towards the sum due next month. The department is also urging taxpayers to use its app, describing it as the fastest method of payment.
More than 110,000 payments have been processed through the HMRC app since April, while nearly 2 million Self Assessment customers have used the app to settle their tax bills since its launch in January 2022. The app also enables users to set payment reminders and monitor their payment history.
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."
Who Needs to Make Payments on Account?
Payments on account are not required by everyone. They are typically unnecessary if the previous year's Self Assessment bill came to less than £1,000, or if more than 80% of the tax owed was collected through a tax code or deducted before the income was received. Tax experts also highlight that anyone anticipating lower earnings this year compared to last can request HMRC to reduce their payments on account, though reducing them excessively could result in interest charges if they underpay.
Early Filing and New Digital Requirements
While the July payment is drawing near, taxpayers are not obliged to wait until January to file their next tax return. HMRC states that people can submit their 2025/26 Self Assessment return now, enabling them to discover their final tax bill well ahead of the January 31, 2027, filing and payment deadline. Filing early also provides taxpayers with additional time to budget for any balancing payment that may still be outstanding.
In a further development, from mid-July approximately 300,000 people who pay the High Income Child Benefit Charge will have Child Benefit information automatically populated in their online Self Assessment return, streamlining the process and improving accuracy.
The reminder arrives as substantial reforms to the tax system continue to be implemented, with sole traders and landlords earning above £50,000 now obliged to adhere to Making Tax Digital for Income Tax, submitting quarterly updates through compatible software. Their initial quarterly submission deadline falls on August 7, 2026.
Fraud Warning
HMRC is also encouraging taxpayers to remain vigilant against fraudsters, cautioning that criminals regularly pose as the department through emails, texts and phone calls in attempts to obtain money or personal information. Taxpayers are advised never to click on links in unsolicited messages or disclose their Government Gateway login credentials.
