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Article ID: 2694
Last updated: 21 Mar, 2024
Payments on account are tax payments made twice a year by self-employed individuals to spread the cost of the year's tax. They are calculated based on your previous year's tax bill, and are due in two instalments. The payment on account is a way of paying off some of your tax bill in advance. Payments on account are due if you meet the criteria explained within our article for Why don’t I have to make payments on account When you do have to make payments on account, this will be calculated based on last year's tax liability (50% each time). The example below should provide you with clarification on this:
Payments on account would be 50% x (Tax due: £30,510.38 minus Class 2: £163.80) = £15,175.89 These Payments on Accounts can be seen on the Tax Payment/Repayment Summary as shown below:
Related Knowledge Base articles: When do I make payments on account? How do I calculate payments on account when there is Marriage Allowance
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