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 quickly, particularly for business owners, landlords and self employed individuals managing fluctuating income or rising costs.
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 typically the second payment on account towards your 2025–26 tax liability.
Payments on account are advance payments based on your previous year’s tax position.
Although the amount may have been calculated some time ago, it remains payable unless a valid claim has been made to reduce it.
Where income is expected to fall, it may be possible to reduce payments.
However, care is needed, as interest may be charged on any underpayment.
👉 You may also find it helpful to revisit our guidance on preparing your Self‑Assessment early HERE
Reviewing your cash position
If you have not already done so, now is an appropriate time to review your cash flow over the coming weeks.
Identifying a potential shortfall early gives you more flexibility.
Business owners may wish to consider:
- Reviewing debtor balances
- Accelerating invoicing
- Delaying non‑essential expenditure
- Extracting funds from the business in a tax‑efficient way
👉 Further insight on managing pressure on cash can be found HERE
Payment plans may be available
If there are concerns about paying in full, it is important to address this before the deadline.
HMRC may agree to a Time to Pay arrangement, allowing liabilities to be settled over a period of time.
The success of any arrangement will depend on individual circumstances, but early engagement is key.
While interest will usually continue to accrue, agreeing a plan can help avoid more serious recovery action.
Start planning now
The earlier you review your position, the more options you will have available. Whether the solution involves:
- Improving cash flow
- Reducing payments on account (where appropriate)
- Agreeing a payment arrangement
…taking action early can make the process significantly more manageable.
👉 Support with forecasting and planning is available HERE
How we can help
Many taxpayers only address these issues as deadlines approach.
A more proactive approach can reduce stress and improve financial control.
A trusted, expert and supportive approach, backed by independent advice, can help ensure you understand your position and take the right steps at the right time.
If you are concerned about funding your Self Assessment payment due on 31 July 2026, we are always happy to help