Final reminder: second 2024/25 self-assessment payment on account deadline

As covered in Tax News on 14 July, the second, and final, 2024/25 self-assessment payment on account for income tax and Class 4 National Insurance Contributions (NICs) is due for payment on or before midnight on Thursday 31 July 2025. Each payment on account is half of the previous year’s tax bill.

Anyone who is self-employed is required to make two payments on account for 2024/25 unless:

• Their 2023/24 Self-Assessment tax bill was less than £1,000, or
• More than 80 percent of all the tax owed in 2023/24 was deducted at source, for example via PAYE.

If a taxpayer knows that their tax bill for 2024/25 is going to be lower than that in 2023/24, a claim can be made to HMRC to reduce payments on account.

Each payment on account made should be 50 percent of the person’s total income tax and Class 4 NICs liability for 2023/24. If the final tax liability in 2024/25 is greater than the total payments on account made, a balancing payment will be due on or before 31 January 2026.