Millions of Self Assessment Taxpayers Face July 31st Payment Deadline

HM Revenue and Customs (HMRC) has issued a reminder to millions of Self Assessment taxpayers that the second Payment on Account deadline falls on 31 July 2026, with one month remaining to prepare.^[1] The deadline affects individual taxpayers including directors and sole traders, many of whom operate through the UK's 5.6 million active companies registered with Companies House.^[2] These individuals must make payments towards their next Self Assessment tax bill by midnight on the deadline date.

Payment on Account Mechanics

Payments on account are instalments towards a taxpayer's next Self Assessment bill, designed to spread the cost of tax owed across two payments.^[1] Each payment represents half of the tax the customer owed in the previous year, with the first instalment due by 31 January and the second by 31 July.^[1]

Not all Self Assessment taxpayers face these mid-year obligations. According to HMRC,^[1] customers are exempt from making payments on account if either the amount of tax owed last year was less than £1,000, or if they paid more than 80% of tax owed outside of Self Assessment - for example through their tax code or because their bank had already deducted interest on their savings.

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."^[1]

Digital Payment Options

HMRC has promoted its mobile app as the quickest payment method, with more than 110,000 payments made through the app since April 2026.^[1] Since the app's introduction in January 2022, nearly 2 million Self Assessment taxpayers have used it to pay towards their tax bill, set payment reminders, and track payment history.^[1]

Customers can set up monthly or weekly payment plans, with any payments already made via these plans counting towards their next Self Assessment tax bill.^[1] Payments on account instalments can be paid before a customer has filed their Self Assessment tax return.^[1]

UK Company Register Context

Analysis of the UK company register provides context for the scale of business structures whose directors and shareholders may have Self Assessment obligations. As of the latest data, CompanyPulse tracks 5.6 million active companies across the UK register,^[2] with 13,241 new incorporations recorded in the past seven days.^[2]

Across the entire UK company register - not filtered by Self Assessment status - certain sectors show high concentrations of registered businesses. The sector with the most registered companies is "Other letting and operating of own or leased real estate" (SIC 68209), with 443,474 companies on the register.^[2] This is followed by "Buying and selling of own real estate" (SIC 68100) with 273,769 companies, and "Management consultancy activities other than financial management" (SIC 70229) with 272,874 companies.^[2]

Other prominent sectors in the UK register include "Other business support service activities" (SIC 82990) with 224,312 companies, "Retail sale via mail order houses or via Internet" (SIC 47910) with 201,292 companies, and "Information technology consultancy activities" (SIC 62020) with 166,480 companies.^[2]

Professional services sectors show significant representation across the register. "Business and domestic software development" (SIC 62012) accounts for 100,542 companies, while "Other professional, scientific and technical activities" (SIC 74909) represents 82,382 companies.^[2] These sectors typically feature high proportions of director-shareholders and consultants who may face Self Assessment obligations.

The construction sector shows substantial activity, with "Development of building projects" (SIC 41100) representing 115,864 companies and "Construction of domestic buildings" (SIC 41202) accounting for 99,459 companies on the register.^[2]

Healthcare, hospitality, and personal services also feature prominently. "Other human health activities" (SIC 86900) accounts for 103,125 companies, "Take-away food shops and mobile food stands" (SIC 56103) represents 82,987 companies, and "Hairdressing and other beauty treatment" (SIC 96020) shows 74,431 companies.^[2]

It is important to note that these figures describe the entire UK company register and are not filtered by Self Assessment filing status or Payment on Account obligations. Many of these companies will have directors who pay tax through PAYE or via company dividends below Self Assessment thresholds.

Mid-Year Cash Flow Pressures

The July 31st deadline falls at a point in the financial year when many businesses face competing cash flow demands. The 31 January deadline is when Self Assessment tax returns must be filed and any remaining tax paid, while the UK tax year ends on 5 April. The July payment comes during the summer trading period when many sectors experience seasonal fluctuations.

For businesses in sectors such as hospitality, tourism, and construction, July represents a peak trading month, but also a period when working capital is tied up in inventory, work-in-progress, and receivables. The requirement to make a payment equal to half of the previous year's tax liability can create liquidity challenges, particularly for businesses whose income has declined year-on-year or which face timing mismatches between revenue recognition and cash collection.

HMRC's emphasis on payment plans and the app-based payment system appears designed to address these cash flow concerns by providing flexibility in how taxpayers meet their obligations. The ability to set up weekly or monthly instalments allows businesses to align tax payments with their operating cash cycles rather than facing a single lump-sum liability on the deadline date.

Looking Ahead

With the deadline one month away as of HMRC's 29 June 2026 announcement,^[1] affected taxpayers have limited time to review their payment obligations and arrange funds. The summer period preceding the deadline may see increased activity on HMRC's digital payment channels as businesses and individuals move to comply with the 31 July requirement.

The intersection of Self Assessment obligations with company-level tax affairs remains complex. While Payment on Account is an individual taxpayer obligation rather than a company tax, the cash flow impact on director-shareholders and sole traders operating through limited companies can create indirect pressures on business liquidity during the mid-year period.

HMRC directs taxpayers to search "Pay your Self Assessment tax bill" on GOV.UK to access the full range of payment options.^[1] As the deadline approaches, the tax authority's focus on digital channels and flexible payment arrangements reflects an acknowledgement of the cash flow challenges many taxpayers face in meeting mid-year obligations.