Each is half
Each payment on account is half of last year's Income Tax and Class 4 National Insurance, paid through Self Assessment. They are due by 31 January and 31 July.
Free payments on account calculator
What are your payments on account?
If your last Self Assessment bill was £1,000 or more, HMRC usually asks for two payments on account towards the next one, on 31 January and 31 July. Enter last year's bill and see whether you have to make them, how much each is, and what is due when.
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HMRC's rule
Half of last year's bill, twice.
When you do not make them
You do not have to if last year's bill was under £1,000, or if more than 80% of the tax you owed was taken at source - through your tax code, for example.
The balancing payment
If you earned more than the payments covered, the rest is due by 31 January as a balancing payment. If you earned less, you may be able to claim some back, or ask HMRC to reduce the payments.
HMRC's own words: Payments on account. Work out the bill itself with the self-employed tax calculator.
What Stoneledger does
Every payment, and its date, in front of you.
- Every deadline in your calendar, 31 January and 31 July included.
- The tax building month by month, so the January payment is never a surprise.
- What to put aside from each month's profit.
Every payment, and its date, all year.
Your tax building month by month, so 31 January and 31 July are never a surprise.