🧾 2nd Payment on Account Deadline – What You Need to Know Before 31 July

If you’re self-employed or have untaxed income, you’ve probably heard of the Payments on Account system. But with the 31 July deadline fast approaching, now’s the time to make sure you’re ready.

📌 What is a Payment on Account?

HMRC asks certain taxpayers to make two advance payments towards their tax bill for the next tax year — one by 31 January, and the second by 31 July.

Each payment is usually 50% of your previous year’s tax bill.

🗓️ Why 31 July Matters

The second payment is due by midnight on 31 July 2025. Miss it and you could face interest charges — even if you’re due a refund later on.

💡 Do I Have to Pay?

You’ll normally need to make this payment if:

• You owed over £1,000 in tax last year, and
• Less than 80% of your tax was collected via PAYE

🤔 Can I Reduce the Amount?

Yes — if your income is lower this year (2024/25), you can ask HMRC to reduce your payments on account. But be careful — if you reduce them too much and underpay, HMRC can charge interest.

💷 How to Pay

• Online: via your personal tax account
• Bank transfer: using your UTR as reference
• Direct Debit or debit card

Always double-check your payment reference — it should be your 10-digit UTR.

✅ Need Help?

If you’re unsure how much to pay — or whether you should reduce it — get in touch. We’ll review your figures and help you avoid overpaying or facing penalties.