Self assessment second payment on account: your 31 July deadline guide

Published Tuesday 28 July 2026

Table of contents

• What's a second payment on account?
• Why you have a payment on account due on 31 July
• How your 31 July payment is calculated
• How to check what you owe before 31 July
• Paying your second payment on account
• How to reduce your payment on account
• What to do if you can't afford your July payment
• What happens if you miss the 31 July deadline
• Stay on top of Self Assessment with Xero
• FAQs on Self Assessment payments on account

Key takeaways

• Your second payment on account is due by midnight on 31 July and is usually half of last year's tax bill.
• You make payments on account if your last Self Assessment bill was over £1,000 and less than 80% of your tax was collected at source.
• If your income has dropped, you can ask HMRC to reduce your payments on account, though reducing them too far means you'll be charged interest.
• If you can't pay in full by 31 July, a Time to Pay arrangement lets you spread the cost and avoid extra penalties.

What's a second payment on account?

A self assessment payment on account is an advance payment towards your next tax bill. If you're self-employed, it also covers your Class 4 National Insurance.

You make these payments in two instalments each year. The first is due on 31 January and the second on 31 July, so the payment landing this summer is your second instalment towards the current tax year.

The idea is to spread your tax over the year rather than paying it all at once. You don't need to be an accountant to handle it, and this guide walks you through each step.

Why you have a payment on account due on 31 July

You have a payment on account due on 31 July because HM Revenue and Customs (HMRC) expects you to pay some of this year's tax in advance. It applies once your tax bill passes a set threshold.

You'll make payments on account unless one of these applies to you:

• Your last bill was under £1,000. If your previous Self Assessment bill came to less than £1,000, HMRC won't ask for payments on account.
• Most of your tax was collected at source. If more than 80% of your tax was already taken off before you were paid, for example through PAYE, you're exempt.

Sole traders often get caught by this because they don’t have an employer to take tax off their income as they earn it. If you're a freelancer, consultant, tradesperson or landlord with no PAYE, you're likely paying HMRC directly, which is the situation payments on account are built for. This is also why registering and filing your Self Assessment as a sole trader matters, and you can read the government’s full rules in its guide to understanding your Self Assessment bill.

How your 31 July payment is calculated

Each payment on account is half of your previous year's tax bill, covering both your income tax and your Class 4 National Insurance. So your 31 July payment mirrors the amount you paid on 31 January.

Here's a simple worked example:

• Say your last Self Assessment tax bill was £3,000. HMRC splits that into two payments on account of £1,500 each: one due on 31 January and one due on 31 July.

If your actual tax for the year turns out higher than the two payments covered, you'll owe the difference. That's called a balancing payment, and it's due by 31 January the following year alongside your next first payment on account. Getting into the habit of setting money aside for tax as you earn makes both dates far easier to meet.

How to check what you owe before 31 July

The exact amount you owe sits in your HMRC online account, on your Self Assessment statement. Checking it early gives you time to plan, and it settles any worry if your payment on account isn't showing yet.

Follow these steps to find your figure:

1. Sign in to your HMRC online account using your Government Gateway user ID and password.
2. Go to your Self Assessment section and open your latest statement.
3. Find the payment due on 31 July and note both the amount and the due date.

If the second payment isn't showing, it often means your statement hasn't updated yet or you weren't due to make payments on account. Give it a little time, then check again closer to the deadline.

Paying your second payment on account

You can pay your self assessment tax bill in several ways, and each one takes a different amount of time to reach HMRC. Choose a method that leaves enough time before midnight on 31 July. If you'd rather handle the whole process online, here's a guide to filing your tax return online.

The usual timeframes and their related payment options are:

• same or next day: online or telephone banking through Faster Payments, CHAPS, a debit or corporate credit card online, or paying in person at your bank or building society
• three working days: Bacs, or an existing Direct Debit that's already set up
• five working days: setting up a new Direct Debit for the first time

If you're setting up a new Direct Debit, start at least five working days ahead so the payment clears in time. You can see every option on the government’s guide to paying your Self Assessment tax bill.

How to reduce your payment on account

You can ask HMRC to reduce your payment on account if your income is genuinely lower this year than last. This is worth doing when you're confident you'll owe less tax, so you're not overpaying and waiting for a refund.

To reduce your payments, take these steps:

1. Work out roughly what your tax bill will be this year, so you have a realistic figure.
2. Claim the reduction through your HMRC online account, or complete form SA303.
3. Keep a note of your new payment amounts and the dates they're due.

Take care not to reduce your payments too far. If you cut them below what you actually owe, HMRC charges interest on the shortfall, so base your estimate on real figures rather than a hopeful guess.

What to do if you can't afford your July payment

If you can't afford to pay in full by 31 July, you may be able to set up a Time to Pay arrangement with HMRC. This lets you spread the cost over a series of smaller payments.

The most helpful thing you can do is contact HMRC early, ideally before the deadline. Pay what you can towards the bill, and set up a plan for the rest. Interest still applies to the outstanding amount, but a Time to Pay arrangement helps you avoid further penalties. Check out the government’s guide for when you can't pay your tax bill on time for directions on arranging a payment plan.

What happens if you miss the 31 July deadline

If you miss the 31 July self assessment deadline, HMRC starts charging late-payment interest on what you owe from 1 August. Interest is charged at HMRC's published rate.

Acting quickly keeps the cost down, since interest builds up for as long as the payment is outstanding. Pay as soon as you can, or set up a Time to Pay arrangement if paying in full isn't possible right now. The sooner you deal with it, the less you'll pay overall.

Stay on top of Self Assessment with Xero

Meeting your payment on account dates is far easier when your income and expenses are already in order. Cloud accounting software from Xero can help keep your figures up to date through the year, so you're less likely to be caught out when a deadline lands.

With software designed to help you get ready for Making Tax Digital for Income Tax, you can keep track of what you earn, keep records in order, and get a clearer view of what to set aside for tax. That means less time buried in paperwork and more confidence heading into 31 July.

Ready to see how Xero helps stay on top of self assessment? Get one month free

FAQs on Self Assessment payments on account

Here are quick answers to some common questions about payments on account.

Is payment on account compulsory?

Yes, payments on account are compulsory if your last Self Assessment bill was over £1,000 and less than 80% of your tax was collected at source. You can't opt out, though you can apply to reduce them if your income has fallen.

Can I stop making payments on account?

You'll stop making them automatically if your tax bill drops below the £1,000 threshold, or if most of your tax starts being collected at source. Otherwise, you can only lower them, not cancel them entirely.

What if my second payment on account isn't showing?

Your statement may not have updated yet, so check your HMRC online account again nearer the deadline. If it still isn't showing, it may be that you weren't due to make payments on account this year.

Does the 31 July payment count towards this year's tax?

Yes, the 31 July payment is an advance instalment towards your current year's tax bill. It's separate from filing your tax return, which has its own 31 January deadline.