Crypto Tax Payments on Account: The 31 July Deadline Explained
Does crypto trigger payments on account? Why your capital gains usually don't, but crypto income can — how the 31 July payment is calculated, and how to reduce it.
If you file Self Assessment, you may have a second tax payment due on 31 July — the "payment on account." For crypto holders this causes a lot of confusion, because whether your crypto creates a payment on account depends entirely on whether HMRC treats your activity as income or as capital gains.
What payments on account are
Payments on account are advance instalments towards your next tax bill. HMRC asks for them when your Self Assessment liability is over £1,000 and less than 80% of your tax is already collected at source through PAYE. You make two payments — one on 31 January, one on 31 July — each equal to half of your previous year's bill. They are then credited against your actual liability when you file.
Why capital gains usually escape payments on account
Here is the key point most crypto investors miss: payments on account are calculated from your Income Tax and Class 4 National Insurance only. Capital Gains Tax is excluded. So if your crypto activity is pure investing — buying, holding and selling — your CGT is not part of the payment-on-account calculation. Instead, CGT is paid in full as part of the balancing payment by 31 January following the tax year.
When crypto income does trigger them
Crypto isn't always capital gains. Staking rewards, mining, airdrops received for doing something, and being paid in crypto are taxed as income. Once that income tax (plus any Class 4 NIC) pushes your bill over the threshold, payments on account kick in — and your 31 July instalment will reflect it.
What's due on 31 July 2026
The payment due on 31 July 2026 is the second payment on account towards your 2025/26 tax year, calculated as half of your 2024/25 income tax liability. Your 2025/26 balancing payment — including all of your crypto CGT for that year — then falls due on 31 January 2027.
Reducing your payment
If you know your income will be lower this year, you can ask HMRC to reduce your payments on account. Don't reduce them below what you'll actually owe, though, or HMRC charges interest on the shortfall. Use CryptoLens to estimate your gains and income first so you reduce from real numbers.
This is general information, not personal tax advice.
Frequently asked questions
Do crypto capital gains count towards payments on account?
No. Payments on account are based on Income Tax and Class 4 NIC only — Capital Gains Tax is excluded. Pure crypto investment gains are instead paid in the balancing payment due 31 January.
What crypto activity can create a payment on account?
Crypto taxed as income — staking and mining rewards, earned airdrops, or being paid in crypto. If that income tax takes your Self Assessment bill over £1,000 (with under 80% collected via PAYE), payments on account apply.
Estimate your crypto tax before 31 July
Put this knowledge into action with CryptoLens — free to use, no sign-up required.
Open Tool →