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If you pay taxes through HMRC’s Self Assessment system, you need to make sure you settle your second payment on account by the end of this month.
A payment on account is an advanced payment towards your tax bill, including income tax and Class 4 National Insurance if you’re self-employed.
July 31st is little more than a week away, if you are self-employed then you may have to make a tax payment before this date, or risk a late payment fine.
In many ways it is the lesser known tax deadline. While January 31 looms large in the minds of all self-employed workers as the time when you need to get all your tax affairs in order and pay what you owe, the July deadline can be forgotten all too easily.
But remembering it is crucial if you want to avoid a fine and interest accruing on your HMRC debt.
The July 31 deadline is not the same as the January 31 deadline. You don’t have to submit another self-assessment; you just need to make a payment.
Self-employed contractors have just a few days left to pay their payment on account.
The second annual tax installment is due on the 31 July and is payable by anyone who is self-employed, or anyone that has substantial income not paid by an employer or pension provider.
Most contractors will have already paid the bulk of their income tax before the first January 31 deadline. The payment on account system means that contractors pay an advance on what the taxman thinks they will owe for the current tax year.
The July 31 payment will reduce what you have to pay next year.
