Your 31st July payment on account is now due. This is your second payment on account towards your 2016/17 tax liability.
‘Payments on account’ are advance payments towards your tax bill (including Class 4 National Insurance if you’re self-employed).
You have to make 2 payments on account every year unless:
- your last Self Assessment tax bill was less than £1,000
- you’ve already paid more than 80% of all the tax you owe, eg through your tax code or because your bank has already deducted interest on your savings
Each payment is half your previous year’s tax bill. Payments are due by midnight on 31st January and 31st July.
If you still have tax to pay after you’ve made your payments on account, you must make a ‘balancing payment’ by midnight on 31 January next year.
Payments on account don’t include anything you owe for capital gains or student loans (if you’re self-employed) – you’ll pay those in your ‘balancing payment’.
Here at Mostons we have a wealth of knowledge and experience when it comes to processing and filing tax returns. We understand that it can be stressful and sometimes daunting when dealing with HMRC and we are here to take that burden away.