With one month to go until the July 31 deadline for the second payments on account, HM Revenue and Customs is reminding millions of Self Assessment taxpayers to prepare — and experts warn that many will be caught out.
“Many who are new to freelancing often get caught out by payment-on-account deadlines, which asks you to pay your taxes ahead of your income,” said Matthew Knight, chief freelance officer at Freelancing.Support. “Getting into the habit of doing your accounts monthly or quarterly helps you keep on top of the admin, rather than waiting for HMRC to remind you.”
“HMRC warns millions of Self Assessment taxpayers as July 31 deadline for second payments on account approaches.”
Nearly two million Self Assessment taxpayers have used the HMRC app since its introduction in January 2022, which allows them to pay towards their tax bill, set payment reminders and track their payment history. Customers can also set up monthly or weekly payment plans, and any payments already made via these plans will count towards their next Self Assessment tax bill.
Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “We know managing a Self Assessment tax bill isn’t always straightforward and we are here to help. From paying instantly via the HMRC app to spreading the cost through a payment plan, there’s support available for every customer. Search ‘Pay your Self Assessment tax bill’ on GOV.UK to choose the payment option that works for you.”
Ross Lacey, director and Independent Financial Adviser at Rayleigh-based Fairview Financial Management, stressed the importance of keeping books up to date. “It’s good practice to get on top of this as early as possible. That way, you can ensure the payments on account remain appropriate for the level of income you’ve actually earned,” he said. “Far too many people are almost a year behind in knowing how their business is really doing. Keeping the book up to date throughout the year makes this less of a mammoth task.”
Samuel Mather-Holgate, managing director and IFA at Swindon-based Mather and Murray Financial, added a stark warning: “Silence is usually the most expensive option. The Self Assessment system is creaking because it asks millions of ordinary people to behave like unpaid tax administrators. Staying up to date matters.”