Glossary · 2026/27
What are payments on account?
Payments on account are advance payments towards the next Self Assessment tax bill, each half of the previous year's bill, due on 31 January and 31 July. They apply when the previous year's bill was over £1,000 and less than 80% of the tax was collected at source. Any balance is settled on the following 31 January.
A sole trader whose income falls can apply to reduce payments on account; one whose income rises pays a balancing payment plus the first payment on account for the following year on the same 31 January.
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