½Û×ÓÊÓƵ

Self assessment ― payments on account

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Self assessment ― payments on account

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
imgtext

Income tax is collected in a number of ways, including:

  1. •

    collection at source throughout the year (eg via PAYE on earnings from employment)

  2. •

    balancing payment for the tax year (tax liability less tax already paid) calculated on the tax return and due by 31 January after the end of the tax year

  3. •

    payments on account calculated by reference to the tax due which has not been collected at source for the previous tax year (due by 31 January before the end of the tax year and the following 31 July)

Most UK taxpayers have all their income tax collected at source via their employers. Balancing payments and payments on account are dealt with via the self assessment system. Any taxpayer who believes they have a balancing payment to make in respect of a tax year must notify HMRC of their chargeability by 5 October following the end of the tax year. See the Notification of chargeability to income tax and capital gains tax guidance note.

Payments on account are interim

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by
  • 26 Mar 2025 05:22

Popular Articles

Transferable tax allowance (also known as the marriage allowance)

Transferable tax allowance (also known as the marriage allowance)What is the transferable tax allowance (marriage allowance)?From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,260) to the spouse or civil partner where neither party is a higher rate or additional

14 Jul 2020 13:52 | Produced by Tolley Read more Read more

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more Read more

Short-term business visitors (STBVs)

Short-term business visitors (STBVs)What is a short-term business visitor?An STBV for UK tax purposes is an individual who performs duties for a non-UK employer and as a part of those duties has been asked to spend a short period working in the UK. There is a common misconception that there is

14 Jul 2020 13:40 | Produced by Tolley in association with Gill Salmons Read more Read more