What is the second payment on account for Self Assessment, due 31 July?

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Self Assessment taxpayers who owe more than £1,000 a year and do not have most of their tax collected via PAYE typically make two "payments on account" during the year: the first alongside the January balancing payment, and the second on its own on 31 July. **Why there are two, not one** HMRC splits the estimated advance payment into two instalments spread six months apart (31 January and 31 July) rather than asking for the full estimated amount in one go, easing the cash-flow burden compared with a single lump-sum prepayment, while still collecting tax closer to when the income was actually earned rather than waiting until the following January. **How the second payment relates to the first** Both payments on account are normally identical in amount, each being exactly half of your previous year's qualifying tax liability (Income Tax plus Class 4 NI, excluding CGT and Student Loan). Unless you have applied to reduce your payments on account between January and July (which you can do), the July figure will match the January one exactly. **What if your circumstances changed between January and July?** You can apply to reduce the second payment on account even if you already paid the first one at the original (higher) amount -- for example if your income unexpectedly dropped partway through the year. HMRC does not require the two payments to match if you have grounds (a genuine, evidenced expectation of lower tax) to reduce the second one specifically. **Worked example** Hannah's 2024/25 tax bill was £5,000, giving payments on account of £2,500 each for 2025/26. She pays the first £2,500 on time in January 2026. By June 2026 her freelance income has fallen due to a slow period, and she reasonably forecasts her 2025/26 tax bill at closer to £3,500 total. She applies to reduce her SECOND payment on account to £1,750 (half of her revised £3,500 forecast), paying that reduced amount by 31 July 2026 instead of the original £2,500. **What happens after the second payment** Once both payments on account are made, they are set against your actual tax liability for that year when you file your return. Any shortfall becomes a balancing payment due the following 31 January (along with the first payment on account for the year after that); any excess is refunded or carried forward as a credit. **Practical tip** Don't assume the second payment on account will simply mirror the first if your income has changed since January -- review your position again before 31 July and adjust if the evidence supports it, rather than defaulting to the same figure out of habit.

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