Taxpayers Advised to Prepare for July Self Assessment Payment Deadline
As the deadline for the second Payments on Account approaches, HM Revenue and Customs (HMRC) is urging Self Assessment taxpayers to take action ahead of the 31 July deadline. With just one month remaining, it is crucial for individuals to ensure they are prepared to meet their tax obligations for the 2025 to 2026 tax year.
The HMRC app has emerged as a convenient tool for taxpayers, facilitating over 110,000 payments since April alone. This user-friendly application allows customers to set up payment plans, enabling them to spread the cost of their tax bills effectively. With nearly 2 million Self Assessment taxpayers having utilized the app since its launch in January 2022, it is clear that this digital solution is making tax management easier for many.
Key Details
HMRC is reminding millions of Self Assessment customers that the second payment on account is due by midnight on 31 July. Payments on account are designed to help taxpayers manage their tax liabilities by allowing them to make two instalments, each amounting to half of the tax owed from the previous year. These payments are essential unless the taxpayer’s tax liability was less than £1,000 last year or if they paid more than 80% of their tax through other means, such as their tax code.
Taxpayers can make their payments through the HMRC app or via the GOV.UK website, where a comprehensive list of payment options is available. It is important to note that these instalments can be made even before the Self Assessment tax return is filed. The final deadline for submitting tax returns and settling any remaining tax owed for the 2025 to 2026 tax year is 31 January 2027. Filing early can provide taxpayers with clarity on their tax obligations sooner.
Myrtle Lloyd, HMRC’s Chief Customer Officer, emphasized the importance of support for taxpayers, stating, “We know managing a Self Assessment tax bill isn’t always straightforward and we are here to help. From paying instantly via the HMRC app to spreading the cost through a payment plan, there’s support available for every customer.” Taxpayers are encouraged to search for “Pay your Self Assessment tax bill” on GOV.UK to explore the payment options that best suit their needs.
What This Means for UK Businesses
For businesses and self-employed individuals, staying ahead of tax deadlines is crucial for maintaining financial health. The ability to set up payment plans can alleviate the burden of large tax bills, allowing for better cash flow management. Additionally, the convenience of the HMRC app streamlines the payment process, making it easier for taxpayers to keep track of their obligations and payment history.
Summary
With the 31 July deadline for the second Payments on Account fast approaching, HMRC is encouraging Self Assessment taxpayers to prepare accordingly. The HMRC app offers a quick and efficient way to manage tax payments, while payment plans provide flexibility in meeting tax obligations. Staying informed about tax developments is essential for all UK taxpayers.
