Last reviewed: 30 June 2026
TL;DR: The second Self Assessment payment on account for the 2025 to 2026 tax year is due by 31 July 2026. It does not apply to everyone, interest accrues if it is paid late, and the amount can be reduced if a taxpayer expects a lower bill than the previous year.
HM Revenue and Customs (HMRC) has reminded Self Assessment taxpayers to prepare for the 31 July 2026 deadline, the second payment on account for the 2025 to 2026 tax year. Payments can be made through the HMRC app, online or telephone banking, or other methods listed on GOV.UK.
What is a payment on account?
Payments on account are advance payments toward the following year's Self Assessment tax bill. Rather than collecting the full amount owed in one instalment each January, HMRC splits the estimated liability into two payments, each based on the tax paid the previous year.
Who has to pay by 31 July 2026?
Self Assessment taxpayers must make payments on account unless one of the following applies: the tax owed for the previous year was less than £1,000, or more than 80 percent of the tax owed was already collected at source, for example through a tax code or savings interest deducted directly by a bank.
What happens if the deadline is missed?
A late payment on account does not carry a fixed penalty in the same way as a late tax return, but interest accrues on the outstanding balance until it is paid in full. Taxpayers who cannot pay by the deadline are advised to contact HMRC as early as possible to arrange a Time to Pay plan, which spreads the amount over future instalments.
Can the payment be reduced?
Taxpayers who expect their 2025 to 2026 tax bill to be lower than the previous year can apply to HMRC to reduce their payments on account, rather than paying based on the prior year's higher figure. This can be done via GOV.UK or the HMRC app, and can be done before a tax return has been filed.
What comes after 31 July 2026?
The next major Self Assessment date is 31 January 2027, when the 2025 to 2026 tax return is due, along with any balancing payment and the first payment on account for 2026 to 2027. Sole traders and landlords with qualifying income above £50,000 are required to use Making Tax Digital for Income Tax and submit quarterly updates, with the first quarterly submission deadline for the 2026 to 2027 tax year falling on 7 August 2026.
KEY FACTS
- Deadline: 31 July 2026 for the second 2025/26 payment on account
- Payment only, no filing obligation attached to this date
- Not required if tax owed last year was under £1,000, or 80%+ was already collected at source
- Next deadline: 31 January 2027 for the 2025/26 return, balancing payment and first 2026/27 payment on account
- MTD for Income Tax: first quarterly submission for 2026/27 due 7 August 2026 for qualifying income above £50,000
RELATED GUIDES
This article is for general information only and does not constitute tax advice. Individual circumstances vary. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority. Readers should consult GOV.UK or a qualified accountant for advice specific to their situation.
Frequently asked questions
What is the payment on account deadline for July 2026?
31 July 2026 is the deadline for the second payment on account for the 2025 to 2026 tax year.
Do all Self Assessment taxpayers have to pay on 31 July?
No. It does not apply if the tax owed in the previous year was under £1,000, or if 80 percent or more of the tax owed was already collected at source.
What happens if the payment is late?
Interest accrues on the unpaid balance from the due date until payment is made in full. There is no automatic fixed penalty for a late payment on account, unlike a late return.
Can the amount be reduced before paying?
Yes. Taxpayers who expect a lower tax bill than the previous year can apply to HMRC to reduce their payments on account via GOV.UK or the HMRC app.
Sources
GOV.UK / HM Revenue and Customs, payment on account guidance and July 2026 deadline notice
GOV.UK, Making Tax Digital for Income Tax guidance
