Latest HMRC Self Assessment Updates (July 2025)

Payments on Account Reminder

The second Self Assessment payment—also known as the payment on account—is due on 31 July 2025. The first instalment was due on 31 January 2025. If there is outstanding tax, a balancing payment must be made by 31 January 2026, along with the first payment for the 2025/26 tax year.

Reduce Overpayments Option

If your income has dropped compared to the previous year, you can request a reduction in your July payment via your HMRC online account or by submitting form SA303. Note that HMRC may charge interest and/or penalties if your estimate is too low. At Walden Way & Co, we can help assess whether this is a suitable step for your situation.

Raised Reporting Threshold for Side Incomes

HMRC plans to increase the trading income threshold from £1,000 to £3,000 during this Parliament. This change will exempt many side-hustlers—casual sellers, gig workers, etc.—from filing full Self Assessment returns. It’s expected to benefit around 300,000 taxpayers by 2029. Walden Way & Co will monitor these changes to keep your obligations clear.

HMRC Reporting from Online Platforms

From early 2026, HMRC will receive income data directly from platforms such as Airbnb, eBay, Deliveroo, and others. Anyone earning over £2,000 or completing 30+ transactions will have their data shared automatically. Walden Way & Co recommends that all clients using such platforms ensure income is properly tracked and declared.

Special Cases Guidance Updated

HMRC has issued new guidance for special-case filings, including trusts, estates, and residency status for 2024/25. If filing on paper after 31 October, a “reasonable excuse” statement may be required. If this applies to you, Walden Way & Co can advise on correct procedures.

Helpful Resources & Support Options

Support is available via HMRC online chat, helplines, helpsheets, and webinars. For more tailored help, Walden Way & Co is available to assist with access issues, lost documents, appeals, and filing queries.

What This Means for Walden Way & Co Clients

1. Key Deadlines to Remember:
   
   • 31 July 2025 — Second payment on account due
     
   • 31 January 2026 — Balancing payment for 2024/25 and first payment for 2025/26
     Late payments attract interest (currently 8%+ APR) and penalties.
     
2. Income Dropped? Act Now:
   
   • Review current-year income.
     
   • Submit SA303 or apply online to reduce July’s payment.
     
   • We can help ensure estimates are realistic to avoid HMRC scrutiny.
     
3. Upcoming Changes to Side-Gig Reporting:
   
   • Earnings below £3,000 will soon be exempt from filing full returns.
     
   • Until then, the £1,000 trading allowance applies.
     
   • Platform-reported income will be automatic from 2026—ensure proper tracking.
     
4. Special Cases: Extra Caution Needed:
   
   • For clients with trusts, estates, or residence changes, review updated HMRC guidance.
     
   • Late paper filings must be supported with a valid explanation.
     
   • Walden Way & Co can assist with selecting the correct return method.
     
5. Direct Clients to Support Resources:
   
   • Use HMRC online tools, chat, or helplines.
     
   • Register new clients by 5 October following the tax year.
     
   • Walden Way & Co provides support at every stage.
     

Client Communication Tips from Walden Way & Co

• Send reminders 30, 14, and 1 day before 31 July deadline.
  
• Encourage early estimation for those expecting lower income.
  
• Flag upcoming income threshold changes to side-hustlers.
  
• Identify special-case clients early for smooth filing.
  
• Share links to HMRC digital tools and offer our support.
  

Quick Reference Table

Need Help Communicating with Your Clients?

Walden Way & Co can provide tailored client updates, deadline reminders, or explainer templates—covering everything from payment plans to penalty appeals. Just let us know how we can support you.