HMRC Sets July 31 Tax Deadline Amid Self Assessment Overhaul

The Her Majesty's Revenue and Customs (HMRC) has established a July 31 deadline for Self Assessment taxpayers to make their second payment on account for the 2025-26 tax year. This deadline primarily impacts self-employed individuals whose previous tax bills exceeded £1,000 and were not collected via PAYE. Late payments are subject to interest charges currently set at 7.75 percent.

Parallel to these immediate collections, HMRC is consulting on a comprehensive overhaul of the Self Assessment system to eliminate large lump-sum January bills. First announced at Budget 2025, the proposed reforms aim to collect Income Tax closer to when it is earned. By April 2029, approximately 2.1 million taxpayers with both PAYE and Self Assessment income would pay forecasted amounts automatically through PAYE tax codes. The government is also considering monthly or quarterly installments for an additional 9.5 million taxpayers.

Financial advisor Claire Trott urged eligible taxpayers to check their online accounts immediately to avoid unexpected costs and advised those unable to afford payments to contact HMRC to discuss support options. While officials maintain the reforms are not a tax increase, the shift may create cash flow pressures for freelancers and those with irregular income. The consultation period for the system overhaul ends on August 4, 2026.