Do you need to make a second tax payment on account (POA) for the 2024/25 tax year by 31 July 2025?
The normal date for paying Income Tax and Class 4 National Insurance Contributions (NIC) under self-assessment is the 31 January following the end of the tax year. However, some taxpayers are required to make a payment on account (POA) on the 31 January during the tax year and on 31 July immediately after the end of the tax year. These POAs are payments towards your next tax bill.
Each POA is 50% of the total amount of self-assessment (SA) Income Tax and class 4 NIC you paid for the previous year. If the tax due for the 2024/5 year ultimately exceeds the POAs made, a balancing payment is required on 31 January 2026.
Not all taxpayers are required to make a POA. If your accountant prepares your tax return, they will have advised you of any POA due by 31 July 2025 when they sent you your 2023/4 tax return for approval. Your online account or self-assessment statement from HMRC should also show whether a POA is required and if so, how much.
If you believe your 2024/5 income is significantly less than the 2023/24 figure, get in touch with your accountant or contact HMRC online or by post. You may be able to make a claim to reduce your payments on account.
