Key takeaways
- The second Self Assessment payment on account for 2025/26 is due by midnight on 31 July 2026.
- Each payment is usually 50% of the previous year's relevant Self Assessment tax bill.
- You normally make payments on account when the previous year's bill was £1,000 or more, unless more than 80% of your tax was collected outside Self Assessment.
- You can ask HMRC to reduce the payment if you reasonably expect your 2025/26 tax bill to be lower.
- If you reduce the payment too far, HMRC can charge interest on the shortfall.
The 31 July Self Assessment deadline is easy to miss. It arrives without a tax return to file, but it can still leave you with a significant HMRC bill.
If you are self-employed, a landlord, a partner in a business, or receive other income through Self Assessment, your second payment on account for the 2025/26 tax year may be due by midnight on 31 July 2026.
This guide explains what a payment on account is, how to check what you owe, when you can ask HMRC to reduce it, and what to do if cash flow is tight.
Quick answer: do I need to pay HMRC by 31 July 2026?
Check your HMRC online account or latest Self Assessment statement. If it shows a second payment on account for 2025/26, HMRC must receive it by midnight on 31 July 2026.
The amount is normally the same as the first payment on account you paid on 31 January 2026. Do not assume that filing is the only thing that creates a deadline: there is no July tax return to submit, but the payment can still be due.
What is a Self Assessment payment on account?
Payments on account are advance payments towards your next Self Assessment bill. HMRC usually divides them into two equal instalments:
- the first is due on 31 January during the tax year
- the second is due on 31 July after the tax year ends
The July 2026 payment is the second advance payment towards your tax bill for the year from 6 April 2025 to 5 April 2026.
Payments on account generally cover Income Tax and, for self-employed people, Class 4 National Insurance. They do not necessarily cover everything that may appear on your final bill. Capital Gains Tax and student loan repayments, for example, can form part of a balancing payment instead.
Who normally has to make payments on account?
You will usually have payments on account if your previous Self Assessment bill was £1,000 or more. They often affect:
- sole traders and freelancers
- landlords with taxable property income
- partners in a business partnership
- company directors with untaxed income
- people with investment or other income reported through Self Assessment
When payments on account may not apply
You normally do not have to make payments on account if your previous year's Self Assessment bill was less than £1,000.
They may also not apply if more than 80% of the tax you owed was already collected outside Self Assessment, such as through PAYE. Your HMRC statement is the safest place to confirm whether a payment has actually been created.
How is the 31 July payment calculated?
Each payment on account is usually 50% of the relevant tax you owed for the previous year.
For example, suppose your 2024/25 Self Assessment bill used to calculate payments on account was £4,000. Your payments towards 2025/26 would usually be:
- £2,000 due on 31 January 2026
- £2,000 due on 31 July 2026
Once your 2025/26 tax return is completed, those two payments are credited against the final bill. If your actual liability is £4,600, you would normally have a £600 balancing payment due by 31 January 2027. If it is £3,600, the excess can be refunded or set against other tax you owe.
How to check what you owe
Do not rely on memory or copy the amount from an old return. To check the live figure:
- sign in to your HMRC online account
- open your latest Self Assessment return
- select “View statements”
- check the payment due date, amount and reference
- allow enough processing time for your chosen payment method
Can you reduce your July 2026 payment on account?
Yes, but only where you have a reasonable basis for expecting your 2025/26 tax bill to be lower than the amount HMRC used to calculate the instalments.
A reduction may be appropriate if your profit or other taxable income fell, you stopped trading part-way through the year, tax deducted at source increased, or you are entitled to more tax relief.
You can apply through your HMRC online account by selecting “Reduce payments on account”, or use form SA303. Estimate carefully: reducing the payment is not a general payment holiday.
Do not reduce the amount without checking the numbers
If you reduce your payments on account and your final 2025/26 tax bill is higher than your estimate, HMRC can charge interest on the shortfall.
Completing the 2025/26 accounts and tax return early gives you a much firmer figure. It can show whether the July instalment is sensible, should be reduced, or may still leave a balancing payment in January.
What if you cannot pay by 31 July?
Act before the deadline rather than waiting for HMRC to chase the debt.
If you still have time, you can make one-off payments or pay towards the bill in instalments. If you cannot pay the full amount on time, contact HMRC as soon as possible to discuss the support or payment arrangement available for your circumstances.
Late payment interest can apply, so silence usually makes the position more expensive. Be ready to explain what you can pay, when you can pay it, and why the full amount is not currently affordable.
Making Tax Digital does not replace this payment
If you are within Making Tax Digital for Income Tax, your first quarterly update may also be due by 7 August 2026. That is a separate reporting requirement.
Sending an MTD quarterly update does not pay your July payment on account, and making the July payment does not submit your MTD update. Check both obligations separately.
Your 31 July action checklist
Before the deadline:
- check your HMRC statement for the exact amount due
- compare the instalment with your expected 2025/26 tax position
- prepare your 2025/26 records early if income or profit changed
- apply for a justified reduction rather than simply paying less
- choose a payment method and allow enough processing time
- contact HMRC promptly if you cannot pay in full
- check whether you also have an MTD quarterly update due on 7 August
How Aurestone can help
Aurestone Advisory helps sole traders, landlords and self-employed professionals understand what they owe before a deadline becomes a cash flow problem.
We can review your HMRC statement, estimate your 2025/26 liability, check whether a payment-on-account reduction is supportable, and help you plan for the January balancing payment.
Official guidance used for this article
This article was checked against HMRC guidance on payments on account, paying a Self Assessment bill, and claiming to reduce payments on account, together with HMRC's 29 June 2026 deadline reminder.
Important note
This article is general information, not personal tax advice. The amount due depends on your own Self Assessment record and circumstances. Check your HMRC account or speak to a qualified adviser before reducing or delaying a payment.
Frequently asked questions
What is the Self Assessment deadline on 31 July 2026?
It is the deadline for the second payment on account towards the 2025/26 Self Assessment bill. HMRC must receive the payment by midnight on 31 July 2026.
Why am I paying tax in July when I have not filed my return yet?
A payment on account is an advance instalment based mainly on the previous year's tax bill. It is credited against your final 2025/26 liability when the return is completed.
Can I cancel my July payment on account if my income fell?
You can ask HMRC to reduce it if you reasonably expect your 2025/26 tax bill to be lower. You should estimate the revised liability carefully because HMRC can charge interest if the reduction is too large.
Does the July payment include Capital Gains Tax or student loan repayments?
Payments on account generally cover Income Tax and Class 4 National Insurance. Other amounts, including Capital Gains Tax and student loan repayments, may instead be included in the balancing payment once the final return is calculated.
What happens if I miss the 31 July payment deadline?
HMRC can charge late payment interest. Check what you can pay and contact HMRC promptly if you cannot settle the full amount rather than ignoring the bill.
Topics
Unsure what HMRC expects by 31 July?
Check your payment before the deadline
We can review the figure, estimate your 2025/26 position and check whether a payment-on-account reduction is supportable.
Next step
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