Contact Us

The £8,000 you’re due to pay by the end of January is in respect of 2017/18.

However, if you’re tax bill is in excess of £1,000 and you’ve paid less than 20% of your tax at source (for example through PAYE on your wages), then you will be expected to make Payments on Account. These are instalments for next year’s tax bill and are normally 50% of your current year’s bill. As you’ve said, the first one is paid in January and the second in July.

Moving forward, they are designed to smooth your tax payments but in the first year, they can be quite a hit to the cashflow, as you will essentially be paying 1.5 times your tax bill this January.

If you think your income and tax bill will be lower next year, you may opt to reduce your Payments on Account. If you reduce your Payments on Account too low, you’ll be charged interest. If they are too high, HMRC will of course refund you. 

If you'd like help with your tax affairs, please contact your local TaxAssist Accountant. Using an accountant should ensure that you're claiming all of the expenses and allowances you're entitled to and they could explore where your Payments on Account for 2018/19 could come down. 

Date published 1 Dec 2017

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 80,684 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free, no obligation consultation

0800 0523 555

Or contact us