Let us sort your Self Assessment online. £119, all in. Learn more

Payment on Account

A Payment on Account is a way of paying Income Tax and National Insurance in advance, usually if you’re self-employed. HMRC asks anyone earning more than 20% of their income outside of employment to pay in this way.

What you need to remember about it:

  • on the first Self Assessment tax return you’ll pay the entire tax bill for last tax year, and half again on top if it as an advance payment for the current year’s tax bill. HMRC will estimate that you’ll earn the same. You do this before the 31st of January.
  • then before the 31st of July, you’ll pay the other half
  • if next year you end up earning either less or more, your Payment on Account will get adjusted.

Hey there! We really hope this article helped you. Tax matters can be a dreadful topic at times. We know. That's why we started TaxScouts.
A stress-free way to getting your taxes done.

Have a minute? See how it works

More guides & useful information

Let us sort your Self Assessment online. £119, all in.

That’s right. No matter how complicated it gets or why you need to do a return in the first place, it’ll cost £119 to get it done. That includes VAT, last-minute changes and all the support you may need.

How it works

1. Answer a few simple questions

And we mean a few. After a couple of minutes of answering questions online we’ll have everything we need to start working on your tax return.

2. Then get paired with a tax accountant

That’s right, you’ll be matched with a real accountant who is best suited to prepare your return. Plus, they’re on hand for questions whenever you need.

3. We file your Self Assessment for you

Once you’ve signed off your return, your TaxScouts accountant will file your return online with HMRC. That’s it! We told you it was simple.