July Reminder: Is Your Second Payment on Account Due?

As we approach the end of July, this is a timely reminder for those of you registered for Self Assessment: if your 2023/2024 tax return required you to make payments on account, your second prepayment may be due by 31 July 2025.

Payments on account are advance payments towards your next tax bill. HMRC requires certain individuals—typically those with significant income not taxed at source (like self-employed professionals or landlords)—to make these payments to help spread the cost of their tax liability.

These payments are based on your previous year’s tax bill and are split into two instalments:

• First payment: due by 31 January

• Second payment: due by 31 July

Each payment is usually 50% of your previous year’s tax liability (excluding student loan repayments and capital gains tax).

How is it Calculated?

Let’s say your 2023/2024 tax bill was £4,000. HMRC would expect:

• £2,000 by 31 January 2025

• £2,000 by 31 July 2025

These payments are then deducted from your actual 2024/2025 tax bill when you file your return. So, they are not extra or duplicate payments—just early contributions toward your next liability.

What If You’ve Already Filed Your 2024/2025 Return?

If you’ve already submitted your 2024/2025 Self Assessment, your actual tax liability may differ from the estimate used for your payments on account. In that case, your second payment may be adjusted accordingly.

If you're unsure whether a payment is due or how much to pay:

• You can log into your Government Gateway account to check.

• Or, if we have access to your tax profile, feel free to reach out and we’ll check for you.

We’re here to make tax season as smooth as possible. If you have any questions about your payments on account, or if your circumstances have changed and you think your payments may need to be reduced, don’t hesitate to get in touch.