Taxi and private hire drivers reminded to prepare for 31 July HMRC Self Assessment tax payment deadline
- Perry Richardson
- 1 hour ago
- 3 min read
HMRC is urging self-employed workers, including hundreds of thousands of taxi and private hire drivers, to make their second payment on account before the end of July or arrange a payment plan if needed.
HM Revenue and Customs (HMRC) is reminding millions of Self Assessment taxpayers, including hundreds of thousands of taxi and private hire drivers, that there is now just one month remaining until the second Payments on Account deadline on 31 July.
The reminder comes as many self-employed drivers continue to manage fluctuating operating costs while meeting tax obligations. The 31 July payment is the second instalment towards a taxpayer’s estimated tax bill for the 2025 to 2026 tax year and is required for those who make payments on account.
HMRC says customers can make their payment using the HMRC app, which has become an increasingly popular option since its launch in January 2022. Since April alone, more than 110,000 payments have been made through the app, while nearly two million Self Assessment taxpayers have used it since it became available.
The app allows users to make payments, view their payment history and set reminders ahead of important tax deadlines. HMRC is encouraging drivers to make use of these digital services to avoid missing the deadline.
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.
“Search ‘Pay your Self Assessment tax bill’ on GOV.UK to choose the payment option that works for you.”
Payments on account are designed to spread the cost of a Self Assessment tax bill by dividing it into two instalments. Each payment is generally equal to half of the previous year’s tax bill and is normally due on 31 January and 31 July.
Not everyone is required to make payments on account. Taxpayers are exempt if they owed less than £1,000 in tax for the previous year or if more than 80% of their tax was already collected outside Self Assessment, such as through PAYE.
For drivers expecting their tax bill to be lower than the previous year, HMRC says it is possible to apply to reduce payments on account. Those who cannot pay in full can also arrange monthly or weekly payment plans to spread the cost. Any payments already made through these arrangements will count towards the outstanding Self Assessment bill.
Although the next tax return does not need to be submitted until 31 January 2027, HMRC is encouraging taxpayers to file early. Doing so provides certainty over how much tax is due and allows more time to budget before the final payment deadline.
The update also comes as Making Tax Digital continues to expand. Sole traders and landlords with annual turnover above £50,000 are now required to comply with the new digital reporting requirements, with the first quarterly submission deadline for the 2026 to 2027 tax year falling on 7 August 2026.
HMRC is also introducing further changes to simplify tax returns for some families. From mid-July 2026, around 300,000 Self Assessment customers liable for the High Income Child Benefit Charge will see Child Benefit payment information automatically added to their online tax return, reducing the amount of information they need to enter manually.
