Payments on Account for Self-Assessment: What They Are and How They Work

Payments on Account are advance payments made toward your Self-Assessment tax bill in the UK, designed to help self-employed individuals manage their tax liabilities effectively.

You are required to make Payments on Account if your Self-Assessment tax bill is more than £1,000 or if less than 80% of your total income tax is deducted at source.

Payments on Account are paid in two equal installments during the year, each calculated as 50% of your previous year's total tax liability.

The deadline for the first Payment on Account is 31st January, due alongside any outstanding tax, and the second is on 31st July.

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