Self-employed Brits have been issued an ‘act now’ warning over an HMRC deadline that could be costly to miss. If you work for yourself, you’re likely to be familiar with the phrase “payment on account”.
This is a payment you make to HMRC twice a year, by the end of January and the end of July, towards your next tax bill. Those who need to pay this bill are running out of time as the second payment is due by midnight on July 31, 2025, and those who forget could be slapped with a £1,600 fine. The number of missed deadlines has increased from 600,000 in 2022 to over 1 million in January 2025.
This equates to one in 11 Brits, and if they miss the looming July 31 date, they face rapidly escalating penalties.
The penalty for missing a deadline is a £100 but this can rise quickly, the Independent reports. If it is 3 months, 6 months, or 9 months late, the cumulative total will reach £1000, £1,300, and £1,600, respectively.
Self-employed Brits only need to make a payment on account if their self-assessment tax bill is more than £1,000 and less than 80% of their tax was collected at source (such as PAYE).
How to make your second payment on account for July
Log in to your self-assessment account to check how much you owe.
Next, choose the “pay by bank account” option, which will direct you to your online or mobile banking account to make a payment to HMRC Shipley.
If you are unable to pay it in full, HMRC offers a “Time to Pay” arrangement in some cases, allowing eligible taxpayers to spread payments over time.
Those who do not have enough funds should contact HMRC’s Business Payment Support Service on 0300 200 3825 as soon as possible.
