If you are a self-assessment taxpayer, you may be required to make payments on account towards your annual tax liability.  The required payments are calculated as half of your previous year’s tax liability and must be paid to HMRC no later than 31st January and 31st July each year.

However, there are two exceptions whereby payments on account are not required:

  • Your prior year self-assessment liability was less than £1,000
  • More than 80% of your tax liability is paid at source

It is important to ensure payments are made to HMRC by the noted deadlines, as interest will be applied to balances where late payment is made.

If you on whether you are required to make payments on account, then please do not hesitate to contact your usual Drummond Laurie contact to discuss in further detail.