Back to glossaryGlossary term
Payment on Account
Advance payments towards next year's tax bill, each half of the previous year's liability, due on 31 January and 31 July. They catch people out in the first year of self-employment, when the January bill is the tax owed plus the first payment on account. You can ask HMRC to reduce them if your income has fallen.
Relevant to:Business
Still not sure what this means for you?
Ask Helena, our AI companion, for guidance tailored to your situation.