Struggling to Fund Your July Tax Payment? Your HMRC Options Explained

This guidance is for Self Assessment taxpayers who are struggling to fund their July tax payment and need to understand what options may be available if paying in full is not possible, particularly where advice from a tax consultant in London may be required to assess the position properly.

The July payment is often overlooked or misunderstood, particularly where cash flow is tight. If handled incorrectly, missing or delaying payment can lead to interest, penalties, or HMRC enforcement action. This page explains when the July payment is due and whether options such as Time to Pay may apply.

Time to Pay Options for the July Self-Assessment Payment on Account

The second 2024-25 payment on account for self-assessment tax payers is due on 31 July 2025. If you are finding it difficult to meet this tax bill, there are options available to ease the burden.

Taxpayers with liabilities of up to £30,000 can use the online Time to Pay (TTP) service to set up instalment payments. This self assessment payment service in London and nationwide is available without the need for direct contact with an HMRC advisor and can be accessed up to 60 days after the payment deadline.

To be eligible for the online service, the following conditions must be met:

• No outstanding tax returns
• No other unpaid tax debts
• No existing HMRC payment plans

For those who do not qualify for the online option, alternative payment plans can be arranged. These plans are typically tailored to the individual’s or business’s specific financial situation, allowing repayment over an agreed period.

HMRC will generally grant extended payment terms if they believe you will be able to pay the full amount in the future. However, if HMRC determines that additional time won’t resolve the issue, they may require immediate payment and take enforcement actions if the debt remains unpaid.

What Happens If the July Tax Payment Is Missed

If the July tax payment is due and not paid on time, HMRC will usually charge late payment interest from the deadline. Where tax remains unpaid, penalties may also apply depending on how long the amount is outstanding.

A common mistake is assuming the July payment can simply be skipped or deferred. In reality, unpaid amounts remain due and can affect later payments, including the following January bill.

In Practice – Why July Payments Catch People Out

In practice, we often see taxpayers focus on the January deadline and underestimate the importance of the July payment. Difficulties frequently arise where income has fallen after the previous tax year, leading people to assume the July payment no longer applies without checking the rules.

For practical advice, experienced accountants in Hammersmith support Self Assessment taxpayers across nearby areas such as Brackenbury Village and Ravenscourt Park who are struggling to meet the July payment deadline. At CIGMA Accounting, our team can help you review your current position and explain what options may be available if paying in full is proving difficult. Find out more about our accounting support in London

HMRC explains payment deadlines, interest, and what to do if you cannot pay your tax bill on time in its official guidance on GOV.UK.

Review Whether You Can Reduce or Spread Your July Tax Payment

If paying the July tax bill in full is not realistic, acting early can make a difference. A short review now can help clarify whether options such as reducing payments on account or using Time to Pay may apply to your situation.