What are payments on account??

Why is my tax bill so much more than I expected?

What is a payments on account?

Do I have to pay a payment on account to HMRC?

It’s a questions we are often asked, and more often than not, the answer is that you haven’t considered payments on account!

Payments on account kick in when your tax liability for the year is greater than £1000, and HMRC require you to pay the following year’s tax in advance - 50% in January and 50% in July.

Oh, and don’t forget payments on account also include Class 4 National Insurance Contributions 🙄

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