For many businesses and taxpayers, July is one of the busiest months of the year for tax compliance. Together with January, it is one of the two peak months for tax returns and payments, making it important to plan ahead and avoid unnecessary penalties or interest charges.
The month begins with the deadline for submitting forms P11D and P11D(b) to HMRC, together with providing employees with details of any taxable benefits and expenses they received during the 2025-26 tax year. These forms must normally be submitted by 6 July.
Any Class 1A National Insurance due on taxable benefits must then be paid by 22 July if payment is made electronically, or by 19 July if paying by cheque. Employers should ensure sufficient funds are available, particularly where company cars or private medical insurance have resulted in larger than expected liabilities.
Businesses operating under the Construction Industry Scheme also need to remember the monthly filing deadlines. CIS returns are generally due by the 19th of each month, together with any PAYE and National Insurance liabilities arising from payroll. Missing these deadlines can result in automatic penalties, even where no tax is due.
Businesses registered for VAT should also check whether a VAT return or payment falls due during July. The exact deadline will depend on the business’s VAT stagger, but it is worth reviewing your compliance calendar to ensure returns are submitted and payments made on time.
For many self-employed individuals and company directors, one of the most significant dates is 31 July. This is the deadline for paying the second Payment on Account towards their 2026-27 Income Tax liability. Although the payment is based on the previous year’s tax bill, taxpayers expecting lower profits during the current year may be able to make a claim to reduce their Payments on Account. Care should be taken before doing so, as interest may be charged if the claim proves to be excessive.
July is also a good opportunity to review your overall tax position before the summer holiday period. Checking that payments have been made, records are up to date and future liabilities have been budgeted for can help avoid unexpected surprises later in the year.
With so many important deadlines falling within a few weeks of each other, a little forward planning can make all the difference. If you are unsure which returns or payments apply to you or your business, please contact us. We will be pleased to help you stay compliant, avoid penalties and ensure that your tax affairs remain firmly on track.
