Self Assessment
Payment on Account Deadline: What You Need to Know Before 31 July.
The second Self Assessment payment on account deadline is approaching. Here is who needs to pay, how the amount is calculated and what you can do if your income has fallen.
Quick answer
If you make payments on account through Self Assessment, your second payment on account for the 2025/26 tax year is due by midnight on 31 July 2026. Payments on account are advance payments towards your tax bill and are generally made in two instalments each year.
For many self-employed people, landlords and other Self Assessment taxpayers, July can bring an unwelcome reminder from HMRC.
The second payment on account for the 2025/26 tax year is due by midnight on 31 July 2026.
HMRC has recently reminded millions of Self Assessment taxpayers to prepare for the deadline, which means now is the time to check whether you have a payment due and make sure you understand exactly what you are being asked to pay.
So, what exactly is a payment on account, who needs to make one and what can you do if your income or circumstances have changed?
At a glance
The key payment on account facts
31 July
Deadline for the second Self Assessment payment on account.
2 payments
Payments on account are generally made on 31 January and 31 July.
Usually 50%
Each payment is usually half of the tax owed for the previous year.
£1,000
Payments on account are generally not required if the previous year’s tax bill was less than this amount.
What are payments on account?
Payments on account are advance payments made towards your next Self Assessment tax bill.
Rather than waiting until the following January to pay the whole amount at once, HMRC generally collects the estimated tax through two instalments during the year:
First payment
Due by midnight on 31 January.
Second payment
Due by midnight on 31 July.
HMRC states that payments on account can include Income Tax and, for self-employed taxpayers, Class 4 National Insurance.
You can read more in the official
HMRC guidance on Self Assessment payments on account
.
Who has to make payments on account?
Payments on account can apply to Self Assessment taxpayers, including many sole traders, landlords and people with other untaxed income.
However, HMRC says you generally do not need to make payments on account if either:
Your tax bill was under £1,000
You generally will not make payments on account if the amount of tax you owed for the previous year was less than £1,000.
More than 80% was already paid
Payments on account are generally not required if more than 80% of the tax owed was already collected outside Self Assessment, for example through PAYE.
Not sure whether you need to pay?
Your Self Assessment statement or HMRC online account should show whether payments on account are due and how much you need to pay.
How are payments on account calculated?
Each payment on account is usually equal to half of the tax you owed for the previous year.
This means that your first and second payments on account together will generally equal the amount used as the basis for calculating them.
A simple example
If the tax bill used to calculate your payments on account is £6,000, you would usually make a first payment of £3,000 in January and a second payment of £3,000 in July.
Your eventual tax bill for the year may, of course, be higher or lower.
If your actual tax liability is higher than the total payments on account you have made, you may have a balancing payment to make by the following 31 January.
If your eventual liability is lower, you may be entitled to a refund or have the overpayment dealt with through your wider tax position.
How do payments on account work in practice?
Imagine the tax bill used as the basis for your payments on account is £6,000.
You have now paid £6,000 towards your actual tax bill.
If your eventual liability turns out to be £7,500, you would normally have a £1,500 balancing payment to make by the following 31 January.
If your actual liability was instead only £5,000, you would have paid £1,000 more than the final liability and may be entitled to a refund or adjustment, depending on your wider tax position.
Income fallen?
Can you reduce your July payment on account?
Potentially, yes.
If you reasonably expect your tax bill to be lower than the previous year, you can ask HMRC to reduce your payments on account.
HMRC says this may be appropriate if:
Your income has fallen
Your business profits or other income may be lower than in the previous tax year.
Your tax relief has increased
You may now be entitled to more tax relief than in the previous year.
More tax has already been deducted
More of your tax may have been collected at source than in the previous year.
Be careful not to reduce your payment too far
If you reduce your payments on account and your eventual tax bill is higher than expected, HMRC can charge interest on the difference.
A reduction should therefore be based on a reasonable estimate of your expected tax position rather than simply being used as a way to ease short-term cash flow.
You can read HMRC’s official
guidance on reducing payments on account
.
How do you reduce a payment on account?
HMRC allows taxpayers to apply for a reduction online or by submitting form SA303.
Apply online
Sign in to your HMRC online account, view your latest Self Assessment return and select the option to reduce payments on account.
Use form SA303
If you are unable to apply online, HMRC also provides form SA303 to claim a reduction.
Where your income has changed significantly, it may be sensible to review your expected tax liability with your accountant before reducing the payment.
Think your payment on account might be too high?
Make sure you understand your position before reducing what you pay.
RiverView Portfolio can help you review your expected tax position, understand how your payment has been calculated and determine whether a reduction may be appropriate.
What happens if you miss the 31 July deadline?
If a payment on account is made late, HMRC can charge interest on the outstanding amount.
This is why it is important to check what you owe and take action before the deadline where possible.
Important
If you know you will struggle to pay, it is generally better to address the issue early rather than simply allow the deadline to pass without taking action.
HMRC provides guidance on payment options and help for taxpayers who cannot pay their tax bill on time.
You can find more information in the official
HMRC guidance on paying your Self Assessment tax bill
.
What if you cannot afford your payment on account?
Cash flow can be particularly challenging for sole traders and business owners, and a large Self Assessment payment can sometimes arrive at an inconvenient time.
The first step is to understand whether the problem is:
The payment itself is too high
Your income or circumstances may have changed enough to justify a legitimate reduction in your payments on account.
You have a cash flow problem
The underlying tax liability may still be correct, but you may be struggling to find the funds to pay it on time.
These are two different situations and should not be treated in the same way.
It is important not to reduce a payment simply because cash is tight if the underlying tax liability is still genuinely expected to be due.
If your tax bill becomes overdue, you may be able to arrange a payment plan with HMRC in monthly instalments, depending on your circumstances. For future Self Assessment bills, HMRC also offers a Budget Payment Plan that can allow eligible taxpayers to make regular weekly or monthly payments towards their next bill.
You can read more about
HMRC payment plans and paying tax in instalments
.
How can you check what you owe?
HMRC says you can check your payments on account through your online account.
To check your payments on account:
- Sign in to your HMRC online account.
- Select the option to view your latest Self Assessment return.
- Select “View statements”.
You should then be able to see:
- payments on account you have already made; and
- payments you still need to make towards your next tax calculation.
If an accountant manages your Self Assessment affairs, they may also be able to confirm the amount due and help you understand how it has been calculated.
Should you submit your next tax return early?
There can be genuine advantages to filing your Self Assessment tax return earlier than the January deadline.
Filing early can give you much better visibility over your actual tax position and more time to plan for upcoming payments.
Filing early does not normally mean paying early
HMRC confirms that filing your 2025/26 Self Assessment tax return early does not mean you have to pay your January tax bill immediately. You still have until the normal payment deadline, but you can know what you owe sooner and budget accordingly.
Other potential benefits include:
- identifying any refund sooner;
- having more time to correct mistakes;
- reducing last-minute pressure; and
- gaining more time to plan your cash flow.
HMRC has published further guidance on the
benefits of filing your Self Assessment tax return early
.
Do not let the 31 July deadline catch you by surprise
For affected Self Assessment taxpayers, the second payment on account deadline is 31 July 2026.
The most important thing is to check:
- whether you have a payment due;
- how much you need to pay;
- whether the amount still reasonably reflects your expected tax position; and
- whether you need to take action before the deadline.
If your income has fallen, you may be able to reduce your payments on account. However, reducing them too far can result in interest being charged later, so any adjustment should be based on a realistic estimate.
And if the problem is affordability rather than a lower tax liability, it is better to seek advice early rather than ignore the deadline.
RiverView Portfolio
Need help understanding your Self Assessment payment?
We help sole traders, landlords and business owners understand their tax liabilities, plan ahead for upcoming payments and avoid unexpected surprises. Whether you are unsure why a payment on account is due, think your July payment may be too high or are concerned about your ability to pay, speaking to an accountant early can help you understand your position.
Frequently asked questions
Payments on account FAQs
