HM Revenue and Customs (HMRC) has issued a reminder that the deadline for the second Payments on Account for the 2025-2026 tax year is just one month away, falling on 31 July. Millions of Self Assessment taxpayers are being encouraged to ensure their payments are made on time to avoid penalties.
To help manage these payments, HMRC offers flexible options such as setting up monthly or weekly payment plans. Any payments made via these plans will count towards the final Self Assessment tax bill.
Since its launch in January 2022, nearly two million Self Assessment taxpayers have used the HMRC app to make payments. The app simplifies the process by allowing users to pay instantly, set reminders, and track their payment history.
READ MORE: DWP Faces Calls to Tackle Rising Pension Benefit Fraud Among Seniors
READ MORE: Thousands of Fish & Chip Shops Face Closure Amid Rising £11 Average Cost
Myrtle Lloyd, HMRC’s Chief Customer Officer, emphasized the support available: “We understand that managing a Self Assessment tax bill can be challenging. Whether you choose to pay instantly through the app or spread the cost with a payment plan, we are here to assist every customer.”
Most taxpayers must make two payments on account each year unless their previous year’s tax owed was less than £1,000 or over 80% of their tax was already collected through other means, such as adjustments to their tax code.
Payments on Account are typically calculated based on the previous year’s earnings, with each payment representing half of the tax owed. If actual earnings exceed estimates, there may be an additional balancing payment to settle the difference.
Taxpayers are encouraged to estimate their Self Assessment tax bill ahead of submitting their tax return. This helps with budgeting and ensures payments are made promptly to avoid any late fees.