Payment on Account: You Don't Have to Pay the Full Amount

What Is a Payment on Account?

HMRC asks many self-employed taxpayers to pay next year's tax in advance. This comes in two instalments, due on 31 January and 31 July. The amount is based on last year's tax bill.

When You Can Reduce It

If you earned less this year than last year, your tax bill will likely be lower too. You can reduce your Payment on Account to match. Do this through your HMRC online account or by submitting form SA303.

Two Rules to Follow

1. Don't cut it to zero unless you earned nothing this year. If you underpay, HMRC charges interest on the shortfall. Reduce it to a realistic figure based on your actual income.

2. Overpaying isn't a problem. Once HMRC processes your tax return, you can claim back every penny you overpaid.

Can't Afford to Pay Right Now?

Set up a Time to Pay arrangement before the deadline. This spreads the cost and protects you from daily interest, which starts building from 1 August.

Not Sure What Your Payments Should Be?

This is where many taxpayers go wrong. Getting the number right takes more than a guess. Artifin Accountants can review your income and confirm the correct figure before the deadline.

<div style="text-align:center; margin:24px 0;"> <a href="https://www.instagram.com/p/DbLwZd9CmiM/" target="_blank" style="background-color:#A51D45; color:#ffffff; padding:14px 28px; border-radius:6px; text-decoration:none; font-weight:bold; font-family:Arial, sans-serif; display:inline-block;"> ▶ Watch Our Detailed Breakdown </a> </div>

Get in touch with Artifin Accountants before 31 July to check your numbers and avoid unnecessary interest charges.

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