Payments on Account (Self Assessment)

by | Jun 9, 2023 | Business Start Up

Payments on account

Payments on account are advance payments towards your tax bill. 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, for example through your tax code

Each payment is half your previous year’s tax bill with payments due by 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 31st January next year.


Your bill for the 2016 to 2017 tax year is £3,000. You made 2 payments on account last year of £900 each (£1,800 in total).

The total tax to pay by 31st January 2018 is £2,700. This includes:

  • your ‘balancing payment’ of £1,200 for the 2016 to 2017 tax year (£3,000 minus £1,800)
  • the first payment on account of £1,500 (half your 2016 to 2017 tax bill) towards your 2017 to 2018 tax bill

You have to pay your second payment on account of £1,500 by 31st July 2018.

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