The payments on account tries to spread the tax burden throughout the year.
The second payment on account for 2023/24 is due on 31 July, so you still have a little time to work out what they owe and make the necessary payment.
Payments on account are advance payments towards tax bills and include Class 4 National Insurance for those who are self-employed. Taxpayers have to make two payments on account each year. These are calculated using their tax bill from the previous tax year.
If, when you have filed your self-assessment tax return for the year, your payments on account do not fully cover the tax liability then a ‘balancing payment’ will have to be made by 31 January following the end of the tax year in question i.e. 31 January 2025.
If, conversely, the payments on account are more than the tax liability, a refund will be made by HMRC if a claim has been made.
The deadline applies to all those who are self-employed unless they owe £1,000 or less as this can be made in a single payment on the first return; or they have already paid more than 80% of the tax owed.
If you think the payment on account is too high you can reduce it. How?
- speak to us, probably the easiest way.
- complete a SA303 form and post it to HMRC; or
- sign into your online personal tax account
If you can’t make the payment, you should get in touch with HMRC as soon as possible to try to set up a time to pay arrangement.
