What are payments on account?

What are payments on account? Payments on account are two advance payments towards next year's tax bill, each usually half of last year's bill, due by 31 January and 31 July. They usually apply once your bill reaches £1,000. Yes, unless last year's Self Assessment bill was under £1,000, or more than 80% of the tax you owed was collected outside Self Assessment, for example through PAYE. Yes. GOV.UK says they include Class 4 National Insurance if you are self-employed. GOV.UK says anything you owe for capital gains or student loans goes in the balancing payment instead. Yes, if you expect your tax to be lower than last year. Do it in your HMRC online account or with form SA303. If you reduce them too far, HMRC charges interest on the shortfall. Read the full answer, with every source, at rightotax.co.uk.