Understand your Self Assessment tax bill

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Payments on account are advance payments towards the tax you owe (this includes Class 4 National Insurance if you're self-employed).

You pay 2 of them unless your last Self Assessment tax bill was less than £1,000 or you’ve already paid more than 80% of all the tax you owe, for example through your tax code or because your bank has already deducted interest on your savings.

Each payment is half your previous year’s tax bill. Payments are usually due by midnight on 31 January and 31 July.

If you still have tax to pay after you’ve made your payments on account, you must make a ‘balancing payment’ by midnight on 31 January next year.
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Check your payments on account

1. Sign in to your online account.
2. Select the option to view your latest Self Assessment return.
3. Select ‘View statements’.

You’ll then be able to see:

• payments on account you’ve already made
• payments you need to make towards your next tax bill
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Reduce your payments on account

If you know your tax bill is going to be lower than last year, you can ask HM Revenue and Customs (HMRC) to reduce your payments on account. You can do this either online or by post.

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To reduce your payments on account online

1. Sign in to your online account.
2. Select the option to view your latest Self Assessment return.
3. Select ‘Reduce payments on account’.
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To reduce your payments on account by post

To apply by post send form SA303 to your tax office.
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If you overpay or underpay

You might pay the wrong amount if your tax bill is higher or lower than you expected.

If you overpay, HMRC will send you a refund.

If you underpay, you’ll be charged interest.

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Download Earnr for free to manage your taxes and file your tax return.