Samantha Leathers

HMRC has reminded taxpayers who make Self Assessment payments on account that their next instalment is due by midnight on July 31. Missing the deadline can lead to interest and late-payment penalties. People who cannot afford the bill are advised to contact HMRC promptly to request a time-to-pay agreement, although interest will continue until the debt is cleared.

HMRC has warned 864,000 sole traders and landlords that their first Making Tax Digital quarterly update is due by 7 August 2026. The requirement initially applies to people with qualifying self-employment and property income above £50,000, with thresholds falling to £30,000 in 2027 and £20,000 in 2028. No penalties will apply for missed quarterly deadlines during the first year, but from the second year taxpayers will receive penalty points and face a £200 fine after four points. Taxpayers must keep digital records, submit updates through compatible software and continue filing a Self Assessment return by 31 January 2027. Experts warn that the system may be more difficult for smaller businesses when the income threshold drops.