Payments on account, explained without the jargon
Why your first big tax bill is bigger than you expected, and how to stop it happening again.
Raj Patel
·
·
4 min read
Key takeaways
- Two advance payments: 31 January and 31 July
- Each is half of last year’s bill
- Your first year can feel like paying 150%
- You can ask to reduce them if profits are falling
What they are
If your Self Assessment bill is over £1,000, HMRC asks for two advance payments towards next year’s bill: one on 31 January and one on 31 July. Each is half of this year’s bill.
Why the first year hurts
In your first year you pay last year’s bill and the first half of next year’s at the same time. That’s why January can feel like paying 150%.
Can you reduce them?
Yes, if you expect lower profits. We can file a claim to reduce them — but if you reduce too far, HMRC charges interest on the difference.
The service behind this guide
Self Assessment tax returns
Start a conversation
See the numbers.
Plan the next move.
30 min
initial conversation
1 day
typical response
£0
to get started
Leave your email and we’ll be in touch within a working day.
We use your details only to reply. Privacy notice