The payments are due by midnight on July 31
HMRC has issued an urgent reminder to people who pay their income tax through Self Assessment tax returns, specifically those using the ‘payments on account’ method as they have until midnight on July 31 to pay their next installment.
Payments on account is a way to spread out the cost of your Self Assessment tax bill by making two instalments throughout the tax year instead of paying the entire bill in one go. The two payments are due on January 31 and July 31.
Missing these deadlines could see people racking up daily interest charges, late payment penalties, and the longer the bills are left unpaid, the higher these charges can go. People who need to make payments on account will be able to see how much they owe for each deadline on their Self Assessment statement or through their online HMRC account.
Taking to X a week ahead of the deadline, HMRC warned: “One week to go until the Self Assessment payment on account deadline. Make your payment via the HMRC app.”
If you are one of the taxpayers that needs to pay by this deadline, but you know you won’t be able to afford the bill in time, Citizen’s Advice recommends calling the Income Tax Helpline as soon as possible on 0300 200 3300.
The charity notes: “HMRC phone lines are often busy. The best time to call is between 8am and 11am on Wednesdays, Thursdays and Fridays – but you might still have to wait in a queue.”
Once you get through the queue, you can ask about a ‘time to pay agreement’. This is an agreement between you and HMRC that won’t change how much you owe, but may give you more time to pay the bill or schedule smaller instalments that you will be able to afford.
Citizens Advice adds: “It’s usually easier to get an agreement before the deadline rather than after you’ve missed it. You might still be able to get one after the deadline, so it’s always worth calling HMRC.
“You’ll be charged interest for however long it takes you to pay off your income tax debt. This starts from the first day the payment is late.”
During this call, you’ll need to explain to HMRC in detail why you can’t pay your tax bill. This may include answering questions about your spending, finances, income and household bills.
You may also be asked:
- what other family members earn
- what you spend on clothes or holidays
- what savings or other assets you have
If you don’t know the answer to any questions, ask to call back with the details they need rather than trying to guess or making up figures on the spot that may not be entirely accurate.
It’s also best to inform HMRC if there’s been any extraordinary circumstances that may have affected your ability to pay the bill, such as customers becoming insolvent and not paying you.
