For many taxpayers, the second Self-Assessment payment on account for the 2025-26 tax year falls due on 31 July 2026. While the January payment often receives most attention, the July instalment can arrive surprisingly quickly, particularly for business owners, landlords and self-employed individuals who have experienced fluctuating income or increased costs during the year.

Planning ahead for this payment can help avoid unnecessary financial pressure and reduce the risk of interest charges and penalties.

Understanding the July payment

The payment due on 31 July 2026 is normally the second payment on account towards your 2025-26 tax liability. Payments on account are advance payments made towards your next tax bill and are usually based on the previous year’s tax position.

Although the amount may have been calculated many months ago, it remains payable unless a valid claim has been made to reduce payments on account. Taxpayers who expect their income and tax liability for 2025-26 to be lower than the previous year may be able to reduce these payments, although care should be taken because interest may be charged if the reduction proves excessive.

Reviewing your cash position

If you have not already done so, now is a good time to review your expected cash flow for the coming weeks. Identifying any potential funding shortfall early provides more options than waiting until the payment deadline is approaching.

Business owners may wish to review debtor balances, accelerate invoicing, delay non-essential expenditure or consider whether funds can be extracted from the business in a tax-efficient manner.

Payment plans may be available

If you are concerned about paying your tax bill in full, it is important to deal with the problem before the tax falls due for payment. HMRC may be willing to agree a Time to Pay arrangement, allowing tax liabilities to be paid over a longer period through regular instalments.

The availability and terms of any arrangement will depend on individual circumstances, but taxpayers generally stand a better chance of securing an agreement if they approach HMRC before the payment becomes overdue. Interest will normally continue to accrue on outstanding balances, but a formal arrangement can help avoid more serious collection action.

Start planning now

The earlier you review your position, the more options you will have available. Whether the answer is improved cash flow management, reducing payments on account where appropriate, or discussing a payment arrangement with HMRC, early action can make the process much easier.

How we can help

If you are concerned about funding your Self-Assessment tax payment due on 31 July 2026, please contact us as soon as possible. We can review your position, assess whether a reduction in payments on account is appropriate and help you explore the options available.