Scots who complete a Self Assessment tax return have been urged to check if they need to make a tax payment before the end of the month to avoid penalties from HM Revenue and Customs (HMRC). Advice Direct Scotland is warning taxpayers that a key Self Assessment payment deadline falls on Friday, July 31, with late payments potentially resulting in interest and fines.
Second Payment on Account Due by July 31
Many people registered for Self Assessment will already have made their first payment on account in January, alongside submitting their tax return for the previous tax year. However, a second payment on account is often due by the end of July. The payment is an advance towards the next tax bill and is usually based on the previous year's tax liability.
People can check whether they need to make a payment by logging into their HMRC online account and reviewing their Self Assessment statement. Anyone who expects to owe less tax than they did the previous year may be able to apply to reduce their payment on account. This can be done online or by post.
Free Help Available from taxadvice.scot
Advice Direct Scotland, which runs the free taxadvice.scot service backed by HMRC, said it is available to help people who are unsure about their tax obligations. The service offers guidance on Self Assessment as well as PAYE, National Insurance, pensions, inheritance tax, Capital Gains Tax, Marriage Allowance, Child Benefit and tax credits.
Andrew Bartlett, chief executive of Advice Direct Scotland, said: "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. If you find the whole thing confusing, don't worry – the taxadvice.scot team is here to help Scots with Self Assessment queries, completely free of charge."
The service is backed by HMRC and provides an alternative to calling them directly. People can find more information by visiting taxadvice.scot or calling the free helpline on 0800 756 3381.
Making Tax Digital Rollout Continues
HMRC has updated guidance explaining how people affected by Making Tax Digital for Income Tax can choose software to manage their tax records and submit updates online. The new digital tax system officially started rolling out in April for some self-employed workers and landlords earning more than £50,000 annually. Making Tax Digital for Income Tax changes how some people report earnings to HMRC by requiring digital record keeping and quarterly updates instead of relying solely on a traditional annual Self Assessment tax return.
HMRC is providing a range of free support to help people prepare, including online guidance, webinars and videos. Those who genuinely cannot use digital tools can apply for an exemption; more details and guidance are available on GOV.UK.
Who Is Affected?
The rules currently apply to self-employed workers, sole traders, and landlords with qualifying income over £50,000. This could include people working as freelancers, delivery drivers, tradespeople, consultants, online sellers, and landlords with rental income. The £50,000 threshold is based on gross income, not profit.
HMRC has confirmed the scheme is due to expand further: people earning more than £30,000 are expected to join from April 2027, and those earning more than £20,000 are expected to join at a later stage.
What Taxpayers Must Do
Under the new system, affected taxpayers must keep digital records, use compatible software, send quarterly income and expense updates to HMRC, and submit a final declaration each tax year. HMRC says software can help people keep track of income and expenses, manage records digitally, submit updates directly to HMRC, and reduce mistakes linked to manual record keeping.
The tax authority has now updated guidance explaining how people can choose software depending on their circumstances, including whether they manage their own taxes, use an accountant or tax agent, need free or paid software, or want software for a single business or multiple income sources. Some products are designed specifically for landlords, while others combine bookkeeping, invoicing and tax reporting. HMRC also said some people may be able to use “bridging software”, which links existing spreadsheets to the Making Tax Digital system.
The updated software guidance explains people should check whether products are compatible with Making Tax Digital for Income Tax before signing up. HMRC has also published a step-by-step guide explaining how people can prepare for Making Tax Digital, including checking whether they qualify, choosing compatible software and signing up for the service.
HMRC says the changes are designed to modernise the tax system and help reduce errors caused by inaccurate or incomplete record keeping. People earning below the current threshold do not yet need to join the scheme unless they choose to do so voluntarily.
