HM Revenue and Customs is reminding millions of Self Assessment taxpayers to prepare for the July 31, 2026, deadline for their second payments on account for the 2025 to 2026 tax year.
The UK government's tax arm warned that individuals face interest, financial penalties, and cash-flow shocks if they miss this annual deadline.
Payments on account are two annual installments that help spread the cost of a customer's tax bill, with each payment usually representing half of the previous year's tax bill.
Taxpayers must make these payments unless their tax owed last year was under £1,000, or if they already paid over 80% of their total tax bill through PAYE or interest deductions.
HMRC officials stated that the agency's mobile application remains the fastest method to clear these bills, noting that nearly 2 million taxpayers have used the app since its January 2022 rollout.
Taxpayers can also establish weekly or monthly payment plans on GOV. UK to manage the costs.
"We know managing a Self Assessment tax bill isn't always straightforward and we are here to help," said Myrtle Lloyd, HMRC's Chief Customer Officer.
Lloyd added that various resources are active online to assist taxpayers in completing their requirements.
"From paying instantly via the HMRC app to spreading the cost through a payment plan, there's support available for every customer," she said.
Experts Urge Year-Round Organization
Financial experts across the UK are urging self-employed workers and landlords to keep their accounts organized throughout the year to avoid being caught off guard by the mid-summer deadline.
"While everyone knows the January 31 deadline, many who are new to freelancing often get caught out by payment-on-account deadlines, which asks you to pay your taxes ahead of your income," said Matthew Knight, chief freelance officer at Freelancing.
Support.
Knight noted that getting into a routine of tracking accounts monthly or quarterly can simplify administrative tasks before HMRC sends reminders.
"Getting into the habit of doing your accounts monthly or quarterly helps you keep on top of the admin, rather than waiting for HMRC to remind you.
This is where Making Tax Digital could actually help small businesses, ensuring they're on top of their taxes," he said.
Financial advisers point out that early preparation allows business owners to evaluate their actual financial performance accurately.
"It's good practice to get on top of this as early as possible.
That way, you can ensure the payments on account remain appropriate for the level of income you've actually earned," said Ross Lacey, director and Independent Financial Adviser at Fairview Financial Management.
Lacey stressed that early accounting prevents small businesses from operating with outdated financial awareness.
"It also helps with any changes you may want to make to your business in the current tax year, using the information on how much profit, or not, was generated in the previous tax year.
Far too many people are almost a year behind in knowing how their business is really doing.
Keeping the book up to date throughout the year makes this less of a mammoth task," he said.
Other industry specialists believe the existing administrative framework requires a structural overhaul to alleviate pressure on independent workers.
"The Self Assessment system is creaking because it asks millions of ordinary people to behave like unpaid tax administrators.
Staying up to date matters.
If you miss the July 31 payment on account you can quickly face interest, penalties and nasty cash-flow shocks," said Samuel Mather-Holgate, managing director and IFA at Mather and Murray Financial.
Mather-Holgate advised taxpayers to check their accounts immediately and communicate early if they face financial strain.
"But HMRC cannot keep relying on last-minute nudges and an app to fix a system many people find confusing.
There should be far clearer prompts, plainer language and earlier warnings, especially for the self-employed and side-hustlers," he said.
Industry professionals also warned that neglecting the July payment creates severe financial challenges when the balancing payments fall due early next year.
"Self Assessment needs year-round organization.
The July 31 payment catches people off guard because it lands months after the January rush, just when many self-employed people, landlords and business owners are focused on keeping cash moving through the summer," said Nouran Moustafa, practice principal and IFA at Roxton Wealth.
Moustafa noted that the current publicity surrounding the tax timeline lacks deep explanation, leading to widespread misunderstandings about how payments on account operate.
"Being up to date matters because this is not a bill you can wish away.
Missing it can mean interest, stress and a much bigger problem by January, when the balancing payment and next payment on account can arrive together.
There is publicity, but not enough explanation.
Too many people still misunderstand what a payment on account is, or assume income received is fully theirs to spend," she said.
HMRC announced that from mid-July 2026, about 300,000 customers will see their Child Benefit data pre-populated on online returns.
Furthermore, the first quarterly submissions under the expanded Making Tax Digital system are due by August 7, 2026.
