The second payment on account for the 2024/25 tax bill is due by midnight on July 31 (tonight), and self-employed workers are being urged to act to avoid penalties
His Majesty’s Revenue and Customs (HMRC) is issuing a last-minute reminder for the looming deadline that falls today. Self-employed individuals are being prompted to settle the second payment on account for their 2024/25 tax bill by midnight on July 31, 2025, to sidestep any late penalties.
With over 12 million people anticipated to submit a tax return and settle any due taxes this year, HMRC has implemented payments on account as a means to prevent taxpayers from facing a hefty single bill.
Taking to social media, the government department announced: “Today is the deadline for #SelfAssessment customers to make their payment on account.” They encouraged taxpayers to “pay online or via the HMRC app.” This comes after recent news of a £200 payment for state pensioners born before 1959 to be made soon.
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These interim payments are mandatory for customers whose previous self-assessment bill exceeded £1,000, or for those who had less than 80% of their tax collected through PAYE. Each instalment amounts to half of the previous year’s tax liability, reports the Liverpool Echo.
Failure to pay up will trigger automatic penalties from HMRC. The requirement to file self-assessment returns extends to self-employed professionals, high-income earners, and certain parents, while most UK taxpayers have their taxes deducted directly from salaries, pensions, or savings and do not need to complete a return.
HMRC advises anyone struggling to meet their tax obligations to get in touch promptly. It may be possible to arrange a payment plan that distributes the cost over a period, helping to dodge additional fines.
Known as a Time to Pay arrangement, this option requires individuals to have their relevant tax reference number, such as the unique tax reference, and UK bank account details where they’re authorised to set up a Direct Debit.
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The Government has unveiled new services for those who pay tax through Self Assessment, aimed at streamlining the process and making it more user-friendly.
As part of its Transformation Roadmap, released on July 21, 2025, HM Revenue and Customs (HMRC) has introduced a range of measures designed to assist customers in their dealings with the department. These measures include:
- Improvements on the Digital Self Assessment registration and opt out processes
- Bringing out enhanced on-screen messages to help customers and reduce waiting times on enquiries
- Fixing the online appeals process for filing and late payment penalties
HMRC is advising customers to take advantage of the summer period by filing their Self Assessment tax return for the 2024 to 2025 tax year early – potentially coinciding with the settlement of their Payment on Account.
By filing early, taxpayers will be aware of the amount they owe and could possibly reduce their next Payment on Account if there’s been a drop in income. Additionally, should a refund be warranted, it can be processed more promptly.
HMRC emphasises: “Paying on time avoids any potential penalties and interest as HMRC charges a late payment penalty from the day after the deadline. Payments can be made quickly, securely and at any time via the HMRC app, which also allows customers to check their tax account.”
