July 31 Self Assessment Deadline: Don't Miss Your Payment on Account
HMRC has issued its official one-month warning: the second Self Assessment payment on account for the 2025–26 tax year is due by midnight on 31 July 2026. If you are self-employed, a sole trader, freelancer, landlord, or run a business that files Self Assessment returns, this date matters to you — and missing it is more costly than ever. With the current late payment interest rate sitting at 7.75%, acting now is far cheaper than dealing with the consequences later.
- The second payment on account for 2025–26 is due by midnight on 31 July 2026.
- It applies if your last Self Assessment tax bill was over £1,000 and less than 80% was collected at source.
- Each payment equals half your previous year’s tax liability — it counts towards your final bill.
- You can pay via the HMRC app, GOV.UK, or set up a payment plan if you are struggling.
- If your income has dropped, you can apply to reduce your payments on account before the deadline.
What Is a Payment on Account?
Payments on account are advance contributions towards your next Self Assessment tax bill. Rather than settling everything in one go each January, HMRC splits the liability into two instalments — one on 31 January and one on 31 July each year. This is designed to help spread the cost, though for many taxpayers the July instalment can arrive as an unwelcome surprise in the middle of summer.
Each payment is half of the total tax you owed in the previous tax year (including Class 4 National Insurance if you are self-employed). You must make these two payments unless your previous year’s tax bill was under £1,000, or you paid more than 80% of your tax through PAYE (for example, through your tax code or savings interest deducted at source). Your HMRC online account will show the exact amounts due.
What to Do Before 31 July
There is still time to act — but you should not leave this to the last minute. Bank transfer payments in particular can take several days to clear. Here is what to do now:
- Log in to your HMRC online account at GOV.UK to check the exact amount due.
- Pay via the HMRC app — the fastest method, with over 110,000 payments made through the app since April 2026 alone.
- Set up a payment plan — if paying in one go is a strain, HMRC allows weekly or monthly payment plans. Any amounts already paid count towards your July bill.
- Apply to reduce your payments — if your 2025–26 income is lower than the previous year, you can ask HMRC to reduce the amount due. Do this online via your Self Assessment account before the deadline.
- File early — submitting your 2025–26 return before the January 2027 deadline means you will know your exact liability sooner and can adjust accordingly.
What Happens If You Miss the Deadline?
Unlike some tax penalties, there is no fixed late payment fine for missing a payment on account — but interest begins accruing immediately. At 7.75% per annum, the charges add up quickly on any unpaid balance. HMRC also notes that persistent late or non-payment can trigger closer scrutiny of your tax affairs.
- Interest at 7.75% starts from 1 August 2026 on any unpaid amount — calculated daily.
- Do not ignore the payment even if you have not yet filed your 2025–26 tax return — you can pay on account before filing.
- Reducing your payment incorrectly can also lead to interest charges if HMRC later determines you owe more than you reduced to — take professional advice before doing so.
- Payment plans must be agreed in advance — calling HMRC or setting one up online after the deadline will not cancel the interest already accumulated.
How 360Accounts Can Help
Not sure whether you owe a payment on account, or how much? Want to check whether you can legitimately reduce it? At 360Accounts, we help sole traders, freelancers, and limited company directors across Guildford and Surrey stay on top of every HMRC deadline — so there are no nasty surprises.
Need help with your July payment on account?
Speak to our team at 360Accounts — we can check your liability, advise on reducing your payments, and keep you on the right side of HMRC.
Get in Touch with 360Accounts