Are You Ready To Make Your Second Payment On Account?

If you earn anything outside of PAYE, you may need to make two payments on account every year. The first of these is due by 31 January – and it’s the one that people tend to…

5 Minute Read

Last Updated: 31st March 2024

If you earn anything outside of PAYE, you may need to make two payments on account every year.

The first of these is due by 31 January – and it’s the one that people tend to remember. After all, at this stage in the year you’re thinking more about tax as you submit your Self Assessment.

By summertime, however, tax can feel like a distant memory – which is why a lot of people forget about their second payment on account due in July.

The deadline for this tax debt is fast-approaching. Here’s what you need to know.

When do I need to make the payment and why?

All second payments on account are due by 31 July. It might seem unfair that you have to pay the taxman again when you’re trying to sort your summer holidays, but there’s a logic behind it.

Payments on account are essentially advance payments towards your next tax bill – and these are calculated based on how much you paid the previous year. HMRC split this debt into two, normally equal instalments six months apart from one another (January and July) – creating a pair of lower bills rather than one big one. A £10,000 tax bill for the previous year, for instance, would result in two £5,000 payments on account. They will need to be made by midnight on 31 January and 31 July.

The only instances where you won’t need to make any payments on account are if your last Self Assessment bill was below £1,000 or if over 80% of your annual tax bill is deducted at source, such as from employment. For example, if your total tax bill for the year is £10,000 and you have already paid £8,200 via your salary then, whilst you will need to pay the outstanding £1,800 by 31 January, you will not be required to make any payments on account.

How do I make my second payment on account?

Currently, you can make your second payment via postal cheque, the HMRC online portal, or tax software.

If your earnings change and you believe you owe less tax this year, you can reduce your payments on account by contacting HMRC to let them know.

It’s important to get your calculations correct too. Pay too little, and HMRC will charge you interest, and may even issue penalties if you continue to delay making up your debt. Pay too much, and you’ll eventually be awarded a refund – but you might be forced to wait some time to receive it.

Keep on top of your tax obligations with GoSimpleTax

There are a lot of different tax debts to remember when you earn money outside of PAYE, and the best way to stay on top of everything is by using GoSimpleTax software.

With GoSimpleTax, you can keep track of your tax bill payments and ensure you put enough money aside for the summer as well as the start of the year – calculating correctly to repay exactly what you owe.

You can trial GoSimpleTax software right now by signing up for a free trial. If you have any questions, get in touch with our tax experts for more information. We’d be delighted to help.

Watch our video on payments on account

Payments on account - everything you need to know

Trusted by over 20,000 subscribers

You don't need to be an expert to complete your self assessment tax return.

Find Out More

Blog content is for information purposes and over time may become outdated, although we do strive to keep it current. It's written to help you understand your Tax's and is not to be relied upon as professional accounting, tax and legal advice due to differences in everyone's circumstances. For additional help please contact our support team or HMRC.

5 Excellent Reasons to Choose Us

Discover how to make tax returns a doddle...

Find out more

Non-domicile tax rules: what will change from April 2025?

02 May 2024

In March 2024, Jeremy Hunt announced in his spring budget speech that the government would scrap the UK’s current non-dom tax regime and replace…

What if HMRC contacted you about income you’ve earned from selling online?

02 May 2024

If you’re not doing it, you probably know someone who is. Selling stuff via Facebook, eBay, Amazon, Etsy, Vinted and other online marketplaces has…

How to keep track of your side hustle income and expenses

16 Apr 2024

Some believe it’s 15%, others say it’s 25% or even as high as 33%. Whatever the truth, a significant percentage of people in the…

How GoSimpleTax Works


Simply register for free with your full name and email address.

Select Your Income

Select the income you receive and follow the hints and tips for potential tax savings.

Validate Your Information

Validate your personal information and submit directly to HMRC to get confirmation in just seconds.


Work Anywhere, With Any Device

Gone are the days of fretting over a calculator surrounded by scraps of paper at the eleventh hour.

GoSimpleTax’s tax return software uses the information you upload in real time to calculate your income and expenditure, working out the tax you owe and sending you helpful notifications when there’s the possibility of a mistake.

Start your free trial

"The software is intuitive and proved very easy to navigate. I found the whole process refreshingly simple. I saved a lot of money too!"

Steve J.

Ordained Presbyter

"Easy to use and value for money. Everything you need to do your tax."

Gordon J.

Self Employed

"It fills in all the forms and sends them to the Inland Revenue. Not expensive either. Takes the stress out of doing your tax return online."

Ross G.

Team Rector

5 reasons to use GoSimpleTax >