HMRC Deadline Alert
HMRC Reminds Taxpayers of July 31 Payment Deadline for Income Tax Installments
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UK taxpayers using the 'payments on account' system have until midnight on July 31 to make their next income tax installment, according to Kent Live. Miss that deadline and HMRC will start charging daily interest on whatever you owe.
Payments on account is a system where taxpayers split their annual income tax bill into two installments. The first goes out on January 31. The second is due now, on July 31, according to Daily Post.
What Happens If You Miss the July 31 Deadline
Missing the July 31 deadline is not without consequences. HMRC charges daily interest on unpaid tax from the moment a payment is late. On top of that, late payment penalties can kick in the longer the bill stays unpaid, according to Lancs Live.
The message from HMRC is simple: the longer you wait, the more you pay. Interest and penalties stack up over time. So even if you cannot pay the full amount, acting quickly is better than doing nothing.
Can't Pay? Here's What to Do Right Now
If you cannot afford the July 31 payment, HMRC wants you to get in touch before the deadline passes. Taxpayers can call the Income Tax Helpline on 0300 200 3300, according to Cambridge News.
Citizens Advice recommends asking HMRC for a 'Time to Pay' arrangement. This is a formal agreement between you and HMRC. It can give you more time to pay, or let you split the bill into smaller installments you can manage, according to Daily Post.
Who Uses Payments on Account and Why It Exists
Payments on account applies to people who file Self Assessment tax returns. This usually means the self-employed, freelancers, landlords, and higher earners with income not taxed at source, according to Kent Live.
The two-installment system exists so HMRC collects tax throughout the year rather than in one large lump sum. Each installment is based on the previous year's tax bill. If your income has dropped since last year, you can apply to reduce your payments on account.
Key Dates and Actions to Take Before July 31
The deadline is midnight on July 31. That means payments must clear by then — not just be sent. Lancs Live notes that HMRC's online payment system is available around the clock, so there is no excuse for a last-minute hold-up.
If you are unsure whether payments on account applies to you, check your most recent Self Assessment bill. It will show whether you owe a July payment and how much. Acting now — even to set up a payment plan — protects you from penalties building up day by day.
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