Reminder: pay your self-employed 'payments on account' before 31 July

If you're self-employed, mark your calendar - the second payments on account for the 2024–25 tax year are due by midnight on 31 July 2025.

Missing this deadline could mean extra interest charges or even impact your credit score.

Here’s what you need to know.

The second payments on account instalment for the 2024 to 2025 tax year is due by 31 July 2025.

What is payments on account?

Payments on account are advance tax payments made twice a year. HMRC estimates what you owe for the current tax year, based on your previous year’s bill and splits it into two payments:

• first payment – due by 31 January
• second payment – due by 31 July

This system helps spread out your tax bill, making it easier to manage.

You’ve got a few options, just make sure your payment arrives on time.

How to pay

Fast options (same or next day):

• online banking
• CHAPS
• debit card (personal)
• corporate credit card (no personal credit cards allowed)
• in-person at your bank (you’ll need a paying-in slip from HMRC)

Slower options (allow extra time):

• BACS or postal cheque – allow 3 working days
• first-time direct debit – allow 5 working days

Budget payment plan

If you prefer to spread your payments across the year, you can set up a budget payment plan with HMRC and make monthly or weekly payments toward your next tax bill.

What happens if you miss the deadline?

If you don’t pay on time:

• HMRC will charge interest
• you might face a late payment penalty

Stay on top of your finances

Being self-employed means your income might vary from month to month, so good budgeting is key.

Keep track of your:

• tax obligations
• spending
• savings
• records

Need a hand? Try our free budget planner and check out our guide full of tips on managing your money when you’re self-employed.