HMRC says "Overdue", but I should have time till 31 Jan 2026 to pay balance for 24-25 tax year !?

AustinZ

As usual I pay first payment on account in Jan, so in this case for 24-25 tax year I paid that in Jan 25.

Then I submit self assessment before 31 Jul 25 to avoid paying second payment on account before 31 Jul 25. I did submit it on 18 Jul 2025. So got a balance to pay for 24-25 tax year (which was less than the second payment on account previously they asked for).

Now normally after this I have until 31 Jan 26 (next year) to pay this balance, along with first payment on account for 25-26 tax year.

However, I went to my account today 3 Aug 25 and it said I must pay this balance and had marked it as "Overdue", and mentioned interest and penalty applies if not paid (the generic statement they put)... !?

I am doing this every year and this is the first time it came up like this. I get the feeling they have changed their approach. Legally I think I have time till 31 Jan 26, but they want to rush people and get them pay right away. Very bad behaviour if you ask me. And it worked in my case of course, it was not much and I just paid it to forget about it, but very naughty...!

Am I right or there has been a change in deadlines I missed... !?   (I submitted 18 Jul so plenty of time before 31 Jul, But I didn't login till today...).

Dazed_and_C0nfused

AustinZ said:

As usual I pay first payment on account in Jan, so in this case for 24-25 tax year I paid that in Jan 25.

Then I submit self assessment before 31 Jul 25 to avoid paying second payment on account before 31 Jul 25. I did submit it on 18 Jul 2025. So got a balance to pay for 24-25 tax year (which was less than the second payment on account previously they asked for).

Now normally after this I have until 31 Jan 26 (next year) to pay this balance, along with first payment on account for 25-26 tax year.

However, I went to my account today 3 Aug 25 and it said I must pay this balance and had marked it as "Overdue", and mentioned interest and penalty applies if not paid (the generic statement they put)... !?

I am doing this every year and this is the first time it came up like this. I get the feeling they have changed their approach. Legally I think I have time till 31 Jan 26, but they want to rush people and get them pay right away. Very bad behaviour if you ask me. And it worked in my case of course, it was not much and I just paid it to forget about it, but very naughty...!

Am I right or there has been a change in deadlines I missed... !?   (I submitted 18 Jul so plenty of time before 31 Jul, But I didn't login till today...).

What was the bottom line of your 2023-24 and 2024-25 SA302 calculations?

Nomunnofun1

 ‘So got a balance to pay for 24-25 tax year (which was less than the second payment on account previously they asked for).’

Does this mean that there is an amount still due to pay on 31st July albeit less than the original second payment on account? Did you make a payment on 31st July?

Isthisforreal99

AustinZ said:

As usual I pay first payment on account in Jan, so in this case for 24-25 tax year I paid that in Jan 25.

Then I submit self assessment before 31 Jul 25 to avoid paying second payment on account before 31 Jul 25. I did submit it on 18 Jul 2025. So got a balance to pay for 24-25 tax year (which was less than the second payment on account previously they asked for).

Now normally after this I have until 31 Jan 26 (next year) to pay this balance, along with first payment on account for 25-26 tax year.

However, I went to my account today 3 Aug 25 and it said I must pay this balance and had marked it as "Overdue", and mentioned interest and penalty applies if not paid (the generic statement they put)... !?

I am doing this every year and this is the first time it came up like this. I get the feeling they have changed their approach. Legally I think I have time till 31 Jan 26, but they want to rush people and get them pay right away. Very bad behaviour if you ask me. And it worked in my case of course, it was not much and I just paid it to forget about it, but very naughty...!

Am I right or there has been a change in deadlines I missed... !?   (I submitted 18 Jul so plenty of time before 31 Jul, But I didn't login till today...).

The bit in bold - does the OP think that by submitting before 31 July that they don't need to pay the 2nd POA on 31 July but the payment date moves to 31 January 2026?

That's my reading and if so there a aerious misunderstanding on OP's part.

Nomunnofun1

Isthisforreal99 said:

AustinZ said:

As usual I pay first payment on account in Jan, so in this case for 24-25 tax year I paid that in Jan 25.

Then I submit self assessment before 31 Jul 25 to avoid paying second payment on account before 31 Jul 25. I did submit it on 18 Jul 2025. So got a balance to pay for 24-25 tax year (which was less than the second payment on account previously they asked for).

Now normally after this I have until 31 Jan 26 (next year) to pay this balance, along with first payment on account for 25-26 tax year.

However, I went to my account today 3 Aug 25 and it said I must pay this balance and had marked it as "Overdue", and mentioned interest and penalty applies if not paid (the generic statement they put)... !?

I am doing this every year and this is the first time it came up like this. I get the feeling they have changed their approach. Legally I think I have time till 31 Jan 26, but they want to rush people and get them pay right away. Very bad behaviour if you ask me. And it worked in my case of course, it was not much and I just paid it to forget about it, but very naughty...!

Am I right or there has been a change in deadlines I missed... !?   (I submitted 18 Jul so plenty of time before 31 Jul, But I didn't login till today...).

The bit in bold - does the OP think that by submitting before 31 July that they don't need to pay the 2nd POA on 31 July but the payment date moves to 31 January 2026?

That's my reading and if so there a aerious misunderstanding on OP's part.

Yep - that was my point exactly!

AustinZ

Isthisforreal99 said:

AustinZ said:

As usual I pay first payment on account in Jan, so in this case for 24-25 tax year I paid that in Jan 25.

Then I submit self assessment before 31 Jul 25 to avoid paying second payment on account before 31 Jul 25. I did submit it on 18 Jul 2025. So got a balance to pay for 24-25 tax year (which was less than the second payment on account previously they asked for).

Now normally after this I have until 31 Jan 26 (next year) to pay this balance, along with first payment on account for 25-26 tax year.

However, I went to my account today 3 Aug 25 and it said I must pay this balance and had marked it as "Overdue", and mentioned interest and penalty applies if not paid (the generic statement they put)... !?

I am doing this every year and this is the first time it came up like this. I get the feeling they have changed their approach. Legally I think I have time till 31 Jan 26, but they want to rush people and get them pay right away. Very bad behaviour if you ask me. And it worked in my case of course, it was not much and I just paid it to forget about it, but very naughty...!

Am I right or there has been a change in deadlines I missed... !?   (I submitted 18 Jul so plenty of time before 31 Jul, But I didn't login till today...).

The bit in bold - does the OP think that by submitting before 31 July that they don't need to pay the 2nd POA on 31 July but the payment date moves to 31 January 2026?

That's my reading and if so there a aerious misunderstanding on OP's part.

That is correct, but why the misunderstanding... ? And from my previous years (since they started charging first and second POA, recall we didn't have this 10 or 15 years go), I have been doing the same without issue.

The rule is that we have until 31 Jan 2026 to pay for 24-25 tax year we owe (without fine or interest), once it is calculated - this is clearly mentioned in HMRC website. The advance payment for first/second POA are based on previous year tax and until proper and correct amount of tax is calculated for current year - encouraging people to do their self assessment and not wait till 31 Jan 2026, if waiting, then pay something in advance.

They want to bring people (self employed) who are not PAYE, in line with salary workers who pay tax monthly on their earnings - my interpretation. 

As I mentioned this was working as I described until last year, only this year they have changed it, on my account anyway... !

AustinZ

Nomunnofun1 said:

 ‘So got a balance to pay for 24-25 tax year (which was less than the second payment on account previously they asked for).’

Does this mean that there is an amount still due to pay on 31st July albeit less than the original second payment on account? Did you make a payment on 31st July?

There is a balance to pay but not on 31 Jul 2025, when the tax for 24-25 tax year is calculated we have time to pay it by 31 Jan 2026 (HMRC clearly says that on their website), this is how it was before, I clearly remember the same last year. I did not pay anything on 31 Jul 2025 thinking it is like last year (last year I paid the balance of 23-24 tax and first POA in Jan 25 without any issue, paid nothing on 31 Jul 24). 

But it seems they have changed this, and that was my question. (Also see my post above.)

Dazed_and_C0nfused

AustinZ said:

Isthisforreal99 said:

AustinZ said:

As usual I pay first payment on account in Jan, so in this case for 24-25 tax year I paid that in Jan 25.

Then I submit self assessment before 31 Jul 25 to avoid paying second payment on account before 31 Jul 25. I did submit it on 18 Jul 2025. So got a balance to pay for 24-25 tax year (which was less than the second payment on account previously they asked for).

Now normally after this I have until 31 Jan 26 (next year) to pay this balance, along with first payment on account for 25-26 tax year.

However, I went to my account today 3 Aug 25 and it said I must pay this balance and had marked it as "Overdue", and mentioned interest and penalty applies if not paid (the generic statement they put)... !?

I am doing this every year and this is the first time it came up like this. I get the feeling they have changed their approach. Legally I think I have time till 31 Jan 26, but they want to rush people and get them pay right away. Very bad behaviour if you ask me. And it worked in my case of course, it was not much and I just paid it to forget about it, but very naughty...!

Am I right or there has been a change in deadlines I missed... !?   (I submitted 18 Jul so plenty of time before 31 Jul, But I didn't login till today...).

The bit in bold - does the OP think that by submitting before 31 July that they don't need to pay the 2nd POA on 31 July but the payment date moves to 31 January 2026?

That's my reading and if so there a aerious misunderstanding on OP's part.

That is correct, but why the misunderstanding... ? And from my previous years (since they started charging first and second POA, recall we didn't have this 10 or 15 years go), I have been doing the same without issue.

The rule is that we have until 31 Jan 2026 to pay for 24-25 tax year we owe (without fine or interest), once it is calculated - this is clearly mentioned in HMRC website. The advance payment for first/second POA are based on previous year tax and until proper and correct amount of tax is calculated for current year - encouraging people to do their self assessment and not wait till 31 Jan 2026, if waiting, then pay something in advance.

They want to bring people (self employed) who are not PAYE, in line with salary workers who pay tax monthly on their earnings - my interpretation. 

As I mentioned this was working as I described until last year, only this year they have changed it, on my account anyway... !

Absolutely nothing whatsoever has changed regarding Self Assessment and POA.

You must be misunderstanding something somewhere.

If your liability for 2024-25 is greater than the POA generated from your 2023-24 return then any extra will be payable as a Balancing Payment, on 31 January 2026.

But submitting a return early does not negate the need to pay both the first and second POA for 2024-25.  The only thing that would do that (once the 2024-25 return is submitted) is if the 2024-25 liability was less than the total of the 2024-25 POA.

NB.  All references to liability are referring to things relevant for POA, not non POA related things like CBT.

Nomunnofun1

AustinZ said:

Nomunnofun1 said:

 ‘So got a balance to pay for 24-25 tax year (which was less than the second payment on account previously they asked for).’

Does this mean that there is an amount still due to pay on 31st July albeit less than the original second payment on account? Did you make a payment on 31st July?

There is a balance to pay but not on 31 Jul 2025, when the tax for 24-25 tax year is calculated we have time to pay it by 31 Jan 2026 (HMRC clearly says that on their website), this is how it was before, I clearly remember the same last year. I did not pay anything on 31 Jul 2025 thinking it is like last year (last year I paid the balance of 23-24 tax and first POA in Jan 25 without any issue, paid nothing on 31 Jul 24). 

But it seems they have changed this, and that was my question. (Also see my post above.)

Nope - they haven’t changed anything since payments on account came into play in 1997/98. 

Put simply, the only way that you would not have been obliged to make a second payment on account on 31st July would be if the first payment on account was sufficient to settle the WHOLE liability for 2024/25. 

In reality what happens is as follows by way of example. 

Let’s say that the payments on account were £1500 each. On submitting your return your liability is found to be £1600 in total. BOTH payments on account would be reduced to £800. 

Having already paid £1500 on the first POA you are required to pay only £100 in the second POA on 31st July. There will be no further amount due as a balancing payment. 

As I said - this has never altered since the onset of self-assessment.

And additionally, they are not advance payments. (This particular misunderstanding appears much more prevalent this year) The 2024/25 tax year finished four months ago! 

Isthisforreal99

Wait till MTD hits the masses, going to be carnage.

sheramber

Iif the amount you paid on account in January is enough to cover  January payment and your July payment  then no more is due until the following January.

I suspect this is what has happened in previous years.

But , this year , your Ja musty payment on account is not enough to cover both pay ments on account , then any balance due on the July payment is payable.

In your case you had not paid enough in January to cover both  payments due.



If you want detailed confirmation  of this then give us the figures. 

How much payment on account did  you pay in January?

How much is your liability for 24/25?