Payments On Account

    Glossary

    Payments on Account

    Payments on account are advance payments towards your next year's UK Self Assessment tax bill, payable in two equal instalments on 31 January and 31 July, each typically equal to half the previous year's tax.

    They're due if your previous Self Assessment tax bill was over £1,000 and less than 80% of your tax was collected through PAYE. The payments are not optional — failing to pay attracts interest and surcharges. You can apply to reduce them if you know your income will be lower this year, but if you reduce them too far HMRC will charge interest on the underpayment.

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