Under the current tax regime, in certain situations you have to make what we call payments on account in January and July. Each payment is half of the previous years tax bill and any balance is then classed as a balancing payment that is made in the following January.
If you haven’t already got your 2021 Self Assessment tax return prepared I would suggest getting this completed as it maybe that your income has dropped and therefore your second payment on account would be recalculated once the return is submitted.
Alternatively, if you now have the money to be able to pay I would make the payment to HM Revenue & Customs as soon as possible to reduce the amount of interest they charge.
If you are still unable to pay the second payment on account then I would suggest making contact with HM Revenue & Customs as soon as possible so they can look at ways to assist you with making the payment – more details can be found here.
If you would like any advice or assistance in this area please contact us on 0800 0523 555 or use our simple online contact form to arrange a free initial consultation.
Date published 15 Oct 2021 | Last updated 15 Oct 2021