HM Revenue & Customs has issued a reminder to anyone who pays tax through Self Assessment that the second Payment on Account deadline falls on July 31.
The payment applies to millions of self-employed workers, landlords and others who complete a Self Assessment tax return each year.
Payments on Account are advance payments towards your next tax bill, with each instalment usually worth half of the previous year’s tax liability. The first payment is due on January 31, with the second due on July 31.
HMRC says customers can pay through the HMRC app, online or by setting up a payment plan if they need more time to spread the cost.
Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “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.”
Who needs to pay?
You normally need to make a Payment on Account if:
- You owed more than £1,000 in tax through Self Assessment last year.
- Less than 80% of your tax was collected through PAYE or another source.
If either of those conditions does not apply, you may not have to make the July payment.
Can you pay less?
If you expect your income to be lower this year, you can ask HMRC to reduce your Payments on Account.
However, if you reduce them too much and end up underpaying, you could still face interest on the outstanding balance.
Payment plans available
Anyone worried about paying the full amount in one go may be able to arrange monthly or weekly instalments through HMRC.
Nearly two million Self Assessment customers have already used the HMRC app to make payments since it launched, allowing users to pay their tax bill, track payments and set reminders.
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More HMRC changes coming
HMRC also confirmed that from mid-July, around 300,000 Self Assessment customers who pay the High Income Child Benefit Charge will see Child Benefit information automatically added to their online tax return, making it quicker and easier to complete.
Meanwhile, sole traders and landlords earning more than £50,000 are now required to use Making Tax Digital for Income Tax, with their first quarterly update due by August 7.
HMRC is also reminding taxpayers to keep their details up to date and beware of scam emails, texts and phone calls pretending to be from the tax authority. Genuine HMRC messages will never ask you to share your sign-in details or click unexpected links.
