North Devon Accounts helps business owners and self-employed taxpayers understand upcoming tax liabilities and avoid unexpected HMRC bills.
For many people, the 31 January Self Assessment deadline receives plenty of attention. The second Payment on Account due on 31 July can arrive much more quietly, often catching taxpayers off guard.
If you are required to make Payments on Account, now is the time to check what is due and ensure funds are available.
What Is Due on 31 July?
The payment due on 31 July 2026 is the second instalment of your Payment on Account for the 2026/27 tax year.
Payments on Account are advance payments towards your next Self Assessment tax bill. They are usually required if:
- Your previous tax bill exceeded £1,000
- Less than 80% of your tax was collected through PAYE
Each instalment is normally 50% of your previous year’s tax liability.
Why Do People Miss This Payment?
Many taxpayers focus on the large payment due in January and assume their tax obligations have been dealt with for another year.
The July payment can then come as an unwelcome surprise, particularly if cash flow has become tighter during the year.
Missing the deadline can result in interest being charged by HMRC, with additional penalties possible if tax remains unpaid.
What If Your Income Has Fallen?
If your profits have reduced since the previous tax year, it may be possible to reduce your Payments on Account.
This can be particularly relevant if you have:
- Reduced your working hours
- Experienced lower business profits
- Retired or partially retired
- Seen a significant change in income
Care is needed before making a reduction claim. If the reduction is too great and insufficient tax is paid, HMRC may charge interest on the shortfall.
How Can You Check What Is Due?
You can review your Self Assessment statement through your HMRC online account.
If you are unsure how the figure has been calculated or whether a reduction may be appropriate, professional advice can help you avoid costly mistakes.
Need Help Before 31 July?
If you are unsure whether a Payment on Account is due, how much you need to pay, or whether your payments can be reduced, North Devon Accounts can help.
Contact our team before the deadline and gain clarity on your tax position. Click the button below to get started.
